Post #460

📺Who Needs Ancient Covenants? 📺 Contracts with gold companies are no longer Moses’ tablets for Ghana 💸 Alongside a planned increase in gold royalties, the government of Ghana is considering ending stabilization contracts that allow several companies to keep legacy royalty and tax rates as long as they meet their investment commitments. 🔸Stabilization contracts exist to lure investors: regardless of future policy changes, a company will pay thesame taxes and fees as on the day the agreement was signed. For the Ghanaian government this has become an obstacle, as amid record-high gold prices it is planning to raise royalties from 5% to as much as 12%. 🔸 As part of this shift, the practice of extending stabilization covenants will end. This will affect at least three companies — Newmont, AngloGold Ashanti, and Gold Fields — which together produced some 60 tonnes of gold in 2023, roughly half of all gold officially mined in Ghana that year. If these measures are approved by parliament and implemented, Ghana will be able to jump aboard and capture its share of the high gold prices. ➡️ Follow to stay informed - @devilsbelow