The government has laid before Parliament the Minerals and Mining Royalty Regulations, 2025, a new Legislative Instrument (L.I.) designed to introduce variable royalty bands for gold, lithium, and other mineral resources.

The proposed regulations establish a sliding-scale royalty framework, allowing royalty rates to adjust automatically in response to fluctuations in global commodity prices.

According to the Minister for Lands and Natural Resources, Emmanuel Armah-Kofi Buah, the approach is intended to ensure the state derives maximum benefit during periods of high commodity prices while offering relief to investors when prices fall.

Addressing journalists after laying the instrument, the minister explained that under current market conditions, lithium attracts a royalty rate of 7 per cent, but this could increase to as high as 12 per cent if prices rise.

“Today, I'm proud to say that I have brought a regulation that gives us a sliding scale agreement. The advantage is that it allows the state to capture the benefit in good times, like in the gold sector, and I have to tell you we've done it across the mineral sector,” Mr Buah said.

He explained that when Ghana’s lithium agreement was first negotiated, global prices stood at about $3,000, resulting in a 10 per cent royalty rate. Under the new sliding-scale regime, prices above that threshold would trigger higher returns for the state.

“But today, with the sliding scale I've brought, even when we get to $2,500, which achieved 10%, when we get to $3,000, because of the sliding scale, $3,000 plus will go to 12%. In fact, if you do the calculation at that point, it means that $3,000, government is saving almost over $500 million,” he noted.

The minister added that the framework also protects mining companies during downturns, as royalty rates would automatically adjust downward when prices decline.

“This sliding scale also gives the companies consideration when prices tumble in difficult times. Then the adjustment will automatically also favour lower royalties,” he said.

Mr Buah stressed that the regulations provide predictability for investors, reducing uncertainty around fiscal terms.

“What is important for investors? It gives them certainty. They are very sure that in Ghana, when the price tumbles, we will not be in trouble because the government automatically will reduce royalties. When prices go up, the government will also take advantage and capture the benefit,” he explained.

Beyond royalties, the regulations introduce a one per cent Community Development Fund, dedicated to financing infrastructure projects in the Mfantseman Municipality. The minister noted that such infrastructure provisions were absent from earlier agreements.

“I'm very happy today that we've strengthened it. We've even had provision in the lithium agreement that I've laid today. Infrastructure provisions was not in the 2023 agreement. It is in now,” he added.

The L.I. applies to all mining agreements and is expected to enhance transparency, balance investor interests, and increase state revenue from Ghana’s mineral resources once approved by Parliament.

However, the Ranking Member on the Lands and Natural Resources Committee, Kwaku Ampratwum-Sarpong, argues that the deal undermines the public interest and weakens confidence in the country’s resource governance framework.