As Ghana moves to overhaul its mining laws to secure a greater share of soaring gold revenues, mining policy strategist and consultant, Ing Wisdom Gomashie, is urging the government to tread carefully, warning that overly aggressive reforms could unsettle investors and undermine long-term gains in the sector.

Gomashie’s comments come amid plans by authorities to revise the country’s mining code, including proposals to significantly increase royalties and scrap development and stability agreements that have historically protected investors from sudden policy changes.

While he acknowledges that government’s intention to maximise national benefits from mineral resources is justified, Gomashie cautions that the method of implementation will be critical.

“The thinking of government is right,” Gomashie told France 24, pointing to the relatively modest share Ghana currently earns from its mineral wealth.

He estimates that the country captures only about 10 percent of total mineral value through royalties, dividends and taxes.

“But the approach should not be draconian,” he added.

According to Gomashie, stability agreements have long served as a safeguard for mining companies undertaking capital-intensive projects in jurisdictions perceived as high-risk.

These agreements, he explained, are often essential for securing external financing and ensuring predictability over the life of a mine.

He warned that eliminating such protections while simultaneously raising royalty rates could send mixed signals to investors.

“Scrapping them outright, while simultaneously increasing royalties, could become a double-edged knife,” Gomashie noted.

He further stressed that Ghana must strike a balance between asserting national interest and maintaining its attractiveness as a mining destination.

His concerns echo broader industry sentiments that policy certainty remains a key factor for multinational mining firms operating in Ghana, the world’s sixth-largest gold producer.

Calls for measured reforms

Wisdom Gomashie’s position highlights the delicate policy path Ghana must navigate as gold prices surge globally.

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While higher commodity prices present an opportunity for increased state revenue, he argues that abrupt fiscal changes could discourage new investments or expansions by existing operators.

Rather than wholesale removal of stability clauses, Gomashie has advocated for a review and restructuring that reflects current economic realities while preserving investor confidence.

He believes Ghana’s growing experience in managing the mining sector places it in a stronger position to renegotiate terms without creating unnecessary uncertainty.

The push for mining reforms comes at a time of heightened fiscal pressure for the country, with the government seeking to boost domestic revenue and stabilise the economy.

Gold exports remain a major foreign exchange earner, underscoring the sector’s strategic importance.

For Gomashie, however, sustainable gains will depend on policies that encourage long-term partnerships, rather than short-term revenue grabs.