Revised lithium deal withdrawn amid mounting criticism  

By Kizito CUDJOE

Government has pulled its revised lithium agreement from parliament after a wave of public criticism over the new fiscal terms, which cut the negotiated royalty rate to 5 percent from an earlier 10 percent secured by the previous administration.

The Ministry of Lands and Natural Resources, in a statement announcing the decision, said this move follows weeks of consultations with civil society groups, industry actors and other stakeholders nationwide.

The withdrawal, it noted, reflects a shift toward “responsive and participatory governance” as authorities seek to rebuild consensus around a deal they now concede requires deeper scrutiny and broader public support.

It also acknowledged that the concerns raised by various stakeholders – including civil society groups and other opposition elements – “merit deeper consideration and Ghana will benefit from a more robust agreement shaped by more inclusive dialogue and backed by law”.

The country’s inaugural lithium agreement with Barari DV was announced in October 2023, granting the company rights to mine lithium at Ewoyaa in the Mfantsiman municipality of Central Region.

The original deal included a 10 percent royalty rate and13 percent free carried interest for the state, structured to maximise national benefit. Covering a 15-year lease over 42.63 square kilometres, the pact gave Barari DV exclusive rights to extract lithium and associated minerals.

However, the agreement was not ratified before the 8^th parliament and the previous administration was dissolved following general elections in 2024.

Nearly a year into the current administration, the Lands Minister re-submitted what he described as a “revised deal” during the 13^th sitting of the 9^th parliament’s 3^rd Meeting’s 1^st Session.

The revised terms were immediately challenged by the Minority. The Minority Leader, Alexander Kwamina Afenyo-Markin, argued that the new agreement is inferior to the original, citing in particular the reduced royalty rate.

Civil society organisations and-think tanks including the Institute of Economic Affairs (IEA) echoed this position, insisting the renegotiated pact fell short of international resource-governance standards.

In its critique, IEA said the revised deal repeated familiar shortcomings of past extractive-sector agreements and failed to meet the obligations Ghana has committed to under global and continental frameworks.

The institute referenced United Nations General Assembly Resolutions 1803 (1962) and 3281 (1974) as well as the African Charter on Human and Peoples’ Rights, which affirm the right of resource-rich nations to manage their natural wealth in ways that deliver clear public benefit.

It highlighted Article 21(1) of the African Charter, which guarantees citizens’ rights to control and exploit natural resources in their interest and Article 21(5), which urges state parties to curb foreign economic exploitation and ensure citizens fully benefit from those resources.

IEA urged parliament to halt approval of the deal and called for deeper revisions that ensure stronger state and community ownership.

It further advised government to establish a state-owned Ghana Lithium Company (GLC) to lead the lithium value chain – from raw extraction through to battery production. Citing Barari DV’s projection of 3.6 million tonnes of spodumene concentrate over a 12-year mine life, IEA stressed the importance of securing local value addition.

But following withdrawal, the Lands Ministry said: “This decision demonstrates government’s unwavering commitment to refining our legal and regulatory landscape for the benefit of every Ghanaian”.

It added that the process of strengthening the legal instrument has begun, guided by substantive feedback from stakeholders to ensure the country meets “the highest standards of fairness and national interest”.

The ministry said it will continue reviewing proposals gathered during the consultation process and will, in due course, present a revised agreement developed in full compliance with the country’s laws and anchored in the national interest.

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