This is why US, China are fighting to stop Ghana from implementing new gold royalty regime

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Ghana’s government decision to implement a New Royalty regime for the exploration of gold has faced serious opposition from the the US, China and other countries.

The Western countries, according to report are opposing the idea of the government of Ghana to raise her 5% fixed exploration of gold between 5% and 12% because it would make the Western African country one of the continent’s most expensive gold exploration.

The US and China believe the decision by the Ghana’s government will reduce the profits of the world’s biggest miners.

Other countries who have raised concerns over a new royalty regime for the exploration of gold set to be implemented by Ghana include Diplomatic missions from the UK, Canada, Australia and South Africa.

These countries, according to reports, have mounted pressure on the government of Ghana to halt the new royalty regime.

Some also described Ghana’s new royalty regime for the exploration of gold as unusual high-level response to fiscal proposal.

The report further stated that Ghana has offered to cut an existing levy because of the attempt to introduce a new royalty regime.

The foreign countries who have already submitted their low-counter rates said the New Royalty regime is too draconian.

A formal document has been served to express their displeasure after the mission met the Minister for Lands and Natural Resources Emmanuel Armah-Kofi Bush, the report indicated.

Adding that the group is working together to meet the Minister of Finance, Dr. Cassiel Ato Forson

Moreover, the Chief Executive Officers (CEOs) of Newmont Gold Fields, Anglo Gold Ashanti and others are not happy about the regime initiated by the government of Ghana.

Source: Elvisanokye.com

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