Minister for Lands and Natural Resources, Emmanuel Armah-Kofi Buah has laid before Parliament the Minerals and Mining Royalty Regulations, 2025, a new Legislative Instrument (L.I.)  intended to to adjust mining royalties.

The proposed regulations establish a sliding-scale royalty framework, allowing royalty rates to adjust automatically in response to fluctuations in global commodity prices and  to ensure the state derives maximum benefit during periods of high commodity prices while offering relief to investors when prices fall.

“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 told journalists in parliament last week.

He explained that when Ghana initially struck its lithium deal, global lithium prices were around $3,000, which led to a 10% royalty rate. Now, with the new sliding-scale system, any price above that level will earn the government a higher share.

“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 proposed Minerals and Mining Royalties 2025, according to the Minister, will also also safeguard mining companies during downturns, as royalty rates would automatically adjust downward when prices decline.

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.

The new regulations go further than royalties by establishing a one per cent Community Development Fund to support infrastructure projects in the Mfantseman Municipality. The minister highlighted that previous agreements did not include such provisions.

“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 Legislative Instrument (L.I.) covers all mining agreements and aims to improve transparency, protect investor interests, and boost government earnings from Ghana’s minerals once Parliament gives its approval.

On the other hand, Kwaku Ampratwum-Sarpong, the Ranking Member of the Lands and Natural Resources Committee, contends that the agreement works against public interest and diminishes trust in Ghana’s resource management system.

In the same vein, an Act of Parliament (ACT 1140) in the year 2025,  established the Ghana Gold Board (GoldBod) to oversee, regulate and undertake the buying, selling, assaying, refining, exporting and other related activities in respect of Gold and other Precious Minerals in Ghana.

The GoldBod per section 78 of ACT 1140, took over the rights, obligations, assets, liabilities and workforce of the Precious Minerals Marketing Company (PMMC) Limited, which is an offshoot of the Ghana Diamond Marketing Board.

In 1963, the Ghana Diamond Marketing Board was established and charged with the responsibility of purchasing and marketing Ghana’s diamonds.

In 1965, by a Legislative Instrument (LI) 401, the Ghana Diamond Marketing Board was incorporated as a State-Owned Enterprise (SOE).

Upon the promulgation of the diamonds decree (NRCD 32) in 1972, LI 916 was enacted to change the company’s name to Diamond Marketing Corporation.

In 1989, PNDC Law 219 was enacted to yet again change the Company’s name to the Precious Minerals Marketing Corporation with enhanced functions to grade, assay, value gold, diamonds and other precious minerals of the country.

In the year 2000, the Corporation was converted by the Statutory Corporations Conversion to Companies Act (ACT 461) to a Limited Liability Company to operate under the Ghana Companies Code Act, (ACT 179) 1963, as Precious Minerals Marketing Company (PMMC) Limited with the same functions.

In the year 2016, the PMMC was appointed the national assayer by the government of Ghana.

To strengthen industry regulation and optimize national benefits, the Ghana GoldBod was established on 2 April, 2025 by the government of Ghana to restructure and streamline the precious mineral trading sector of Ghana.

The GoldBod initiative is a product of extensive stakeholder consultations and aims at maximizing foreign exchange inflows, gold reserve accumulation and value addition for sustainable growth and transformation.