Source: Africa Publicity
Gold mining companies operating in Ivory Coast have started paying a newly introduced 8% royalty on revenues, applied retroactively to January, after months of resistance failed to secure changes to the policy, according to industry sources.
From Dispute to Compliance
The West African country, the world’s largest cocoa producer, replaced a previous royalty framework—ranging from 3% to 6% depending on contract terms—with a flat 8% levy as part of efforts to diversify state revenues beyond agriculture. Mining firms initially challenged the move, arguing that long-term contracts protected them from unilateral fiscal changes and that the new rate was therefore unlawful.
Despite negotiations with the government, companies have now begun settling the higher payments after authorities refused to amend the policy, three sources familiar with the matter said. The sources requested anonymity because they were not authorised to speak publicly.
“Everyone has now agreed to pay—the main question is whether penalties will be imposed,” one mining executive said, noting that firms are moving quickly to clear arrears to avoid possible fines.
Industry and Government Reaction
Ivory Coast’s mines chamber and the ministries of mines and finance did not immediately respond to requests for comment.
Fortuna Mining, one of the operators in the country, confirmed it has complied.
“We’ve made our payments at 8%, backdated to when it was introduced,” said David Whittle, West Africa chief operating officer. “We didn’t see negotiations heading anywhere. The gold price has taken care of it,” he added, referring to gold’s roughly 65% rise this year, which has helped cushion the financial impact.
Major Players Affected
Ivory Coast’s gold sector includes producers such as Perseus Mining, Endeavour Mining, Fortuna Mining, Allied Gold, as well as newer entrants like Montage Gold. The country has positioned itself as one of West Africa’s fastest-growing gold producers, attracting sustained foreign investment over the past decade.
Regional Trend of Higher State Take
The move reflects a broader regional shift as West African governments seek a larger share of windfall profits from booming commodity prices. While military-led states such as Guinea, Mali, Niger and Burkina Faso have pursued aggressive measures—including licence revocations and asset seizures—countries like Ivory Coast and Ghana have opted for legislative changes and higher taxes or royalties.
Mining companies warn that rising fiscal pressure could dampen future investment, particularly in exploration and mine expansion, even as governments argue the measures are necessary to strengthen public finances and ensure citizens benefit more directly from natural resources.
