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Ghana's gold output driven by artisanal mining and reforms

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Proposed royalty changes could impact 2026 gold production

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Higher royalties may threaten mining jobs and project

viability

By Maxwell Akalaare Adombila

CAPE TOWN, Feb 12 (Reuters) - Ghana produced a record 6

million ounces of gold in 2025, according to provisional ​data,

with large-scale mines contributing 2.9 million ounces,

unchanged from last year, ‌an association of multinational and

local mining companies told Reuters on Thursday.

However, the industry cautioned that next year's projected

6.5-million-ounce output is ⁠at risk, citing concerns over

Ghana's planned overhaul of mineral royalties, which could delay

new projects and ⁠expansions that underpin 2026 production.

The Ghana Chamber of Mines CEO Kenneth ‌Ashigbey said 2025

production beat ‌its target due to artisanal and small-scale

mining (ASM), which rose to about 3.1 million ounces.

SURGING GOLD PRICES, REFORMS DRIVE OUTPUT

Record-high bullion ​helped divert more artisanal gold supply

into formal channels ‌under recent reforms, Ashigbey said on the

sidelines of African mining conference Mining Indaba.

Africa's top gold producer plans to replace its fixed

royalty rate with a sliding-scale of ​5% to 12% tied to gold

prices.

Ghana, like ​many other ‌African countries, is raising mining

royalties as governments seek to capture more revenue from their

natural resources as commodity prices surge.

Reuters previously reported that Ghana agreed to cut an

existing levy ⁠to ease passage of the reform, but mining

companies say the proposed scale remains too ⁠steep and have put

forward lower rates.

The new regime could take effect this month unless amended

or withdrawn.

"We stayed almost flat in 2025, but the concern is 2026,"

Ashigbey said. "The royalty increase will hit new projects

immediately - the ones meant to lift next year's

production."

The industry body said stable large-scale 2025 output

reflects ⁠production ramp-ups ‌at Shandong Mining's

Cardinal Namdini and Newmont's ( NEM ) Ahafo North against declining

grades at ‌older mines, including Gold Fields' Damang.

Artisanal supply, which is hardly levied, was steadier after

Ghana's gold-buying programme ⁠reduced smuggling, Ashigbey said.

HIGHER ROYALTIES THREATEN JOBS

Miners argue the proposed scale would squeeze cash flow,

force miners to process only high-quality ore and shorten mine

lives.

A chamber position paper seen by Reuters shows that lifting

royalties from 5% to 7% at a realized price of $2,044/oz would

cut net present value of AngloGold Ashanti's ( AU ) Obuasi mine

by 8% under the new scale - enough to drop it below typical

hurdle rates - while Perseus Mining's ( PMNXF ) planned $170

million expansion ​of the Edikan mine's pit would become

uneconomic.

Together, the two projects account for 1,344 jobs and more

than $800 million in future royalties and taxes.

Adamus Resources and Asante Gold ( ASGOF ) will also be hit

hard, Ashigbey said.

Perseus, ​AngloGold Ashanti, Adamus and Asante Gold ( ASGOF ) did ‌not

immediately respond to requests for comment.