Majority Leader Mahama Ayariga says the government’s decision to withdraw the lithium mining agreement is part of a broader plan to overhaul Ghana’s mineral royalty regime and link it directly to world market prices.

Speaking on the floor of Parliament, Mahama Ayariga explained that commodity prices have shifted significantly since the original agreement was brought before the House, making the fixed royalty structure outdated and unattractive for investors.

According to him, when the erstwhile NPP administration first proposed the deal, global lithium prices were high, prompting Parliament to push for higher royalties.

“After the NPP left office and we took over, the world market price of lithium collapsed… and therefore, it became a disincentive for anyone to invest,” he said.

He argued that pegging royalties to fluctuating international prices would ensure Ghana benefits more when mineral prices soar, particularly for gold, whose global value has sharply increased.

Ayariga noted that the country is “still collecting very low royalties,” despite the boom in gold prices.

He said the upcoming legislation will introduce a uniform, flexible royalty system covering all mineral resources, eliminating the need for ministers to repeatedly return to Parliament whenever world prices change.

Under the proposed framework, investors would pay lower royalties when prices fall and higher rates when prices rise.

Mahama Ayariga added that consultations with civil society groups and industry experts influenced the decision.

He maintained that the long-term objective is to create a fair system that balances investor interest with national benefit: “When prices go up, the investor must also reward the country for allowing them to mine the resource.”

The withdrawal of the lithium agreement, he stressed, is therefore a temporary step as the Lands and Natural Resources Ministry prepares comprehensive reforms to Ghana’s royalties structure.