The Minority Caucus on Parliament’s Lands and Natural Resources Committee has sharply criticised the government over the newly renegotiated lithium mining lease with Barari DV Ghana Limited, describing the revised terms as a “complete compromise” of Ghana’s national interest.

At the centre of the dispute is the decision to reduce the royalty rate for lithium exploitation from the previously agreed 10 percent to 5 percent — the statutory minimum under the Minerals and Mining Act.

The Minority says the new rate represents a significant downgrade from the 2023 agreement approved under former President Nana Akufo-Addo, and leaves the country worse off in a sector they describe as strategically important.

In October 2023, the government signed a mining lease with Barari DV Ghana Ltd that, at the time, was promoted as a landmark improvement over earlier mineral agreements. The 2023 terms included:

• a 10% royalty rate above the usual 5%
• 13% free carried interest for the State, above the statutory 10%
• additional 30% Ghanaian participation through the Minerals Income Investment Fund (MIIF) and listing on the Ghana Stock Exchange
• a 1% Community Development Fund for local development
• a 1% Growth and Sustainability Levy
• a commitment to establish a chemical plant to support value addition

Although the then opposition National Democratic Congress (NDC) dismissed the 10% royalty at the time as “a celebration of mediocrity”, it argued that the law allowed for even higher rates when commodity prices improved.

The Minority now argues that the current NDC administration has done exactly what it previously criticised — negotiated a “less favourable” deal.

“Today, when given the opportunity to negotiate properly, the Government has reduced the royalty rate from 10% to 5%,” the Caucus stated.

“What has changed? What has happened to the principle that 10% should be the baseline rate, subject to upward adjustment?”

The Minister for Lands and Natural Resources, Emmanuel Armah Kofi Buah, has defended the revised rate, citing global lithium price trends.

However, the Minority counters that global price considerations were already factored into the earlier 10% royalty, insisting the company would still be profitable under the higher rate.

The Minority also rejects arguments from members of the Majority Caucus that the 10% royalty in the 2023 agreement was unlawful because the statutory rate is 5%.

They point to previous examples where governments agreed to royalty rates both above and below statutory levels:

• In 2014, when the statutory rate was 5%, government agreed with Newmont Ghana Gold Ltd on a variable rate between 3% and 5%.
• In 2016, with Act 900 already in force, government again agreed a 3–5% royalty rate with Goldfields Ghana Ltd.

They argue that the revised lithium agreement itself — specifically clause 20(a) — recognises that royalty rates can be set “as prescribed by law or as may be agreed” between the company and the State.

According to the Minority, if the statutory framework is inadequate, the Minister still has the legal authority under Act 900 to prescribe a higher minimum rate.

The Caucus accuses the government of abandoning positions it championed while in opposition, including:

• rejecting the “colonial” mining lease model and advocating joint ventures and service agreements
• criticising weak value-addition requirements, including the proposal for a chemical plant
• claiming earlier deals lacked provisions securing Ghana’s control of the lithium value chain
• opposing agreements with free-zone companies based on long tax holidays

“What has changed for the Government to now embrace the same laws, the same mining model, the same provisions and the same company?” the Minority asked.

Demand for Reversal

The Minority is therefore calling for the royalty rate to be immediately restored to the earlier 10%, arguing that even if the government cannot negotiate a superior agreement, it should not endorse a deal that “leaves the Ghanaian people worse off”.

“We remain committed to fighting for the welfare of our people and will continue to hold Government accountable,” said Kwaku Ampratwum-Sarpong, MP for Mampong and Ranking Member on the Lands and Natural Resources Committee, who issued the statement on behalf of the Caucus.

The government is yet to issue an official response to the Minority’s concerns over the revised agreement.