The Minority Caucus on Parliament’s Lands and Natural Resources Committee has sharply criticised the government over the recently renegotiated lithium mining lease with Barari DV Ghana Limited, describing the revised terms as a “complete compromise” of Ghana’s national interest.
At the heart of the controversy is the government’s decision to reduce the royalty rate for lithium exploitation from the previously agreed 10 per cent to just 5 per cent — the statutory minimum under the Minerals and Mining Act.
The Minority argues that 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.
A 2023 deal rewritten
In October 2023, the government signed a mining lease with Barari DV Ghana Ltd that was then hailed as a landmark improvement over previous mineral agreements.
The terms included a 10% royalty rate above the statutory 5%, a 13% free carried interest for the State, additional 30% Ghanaian participation through the Minerals Income Investment Fund (MIIF) and listing on the Ghana Stock Exchange, a 1% Community Development Fund, a 1% Growth and Sustainability Levy, and a firm commitment to establish a chemical plant to drive local value addition.
At the time, the opposition National Democratic Congress (NDC) dismissed the 10% royalty as “a celebration of mediocrity” but acknowledged that the law allowed for even higher rates if commodity prices improved.
Now, the Minority argues, the NDC administration has done exactly what it previously criticised, negotiating a deal that is “less favourable” to the country.
“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?”
Govt defends, minority disputes
The Minister for Lands and Natural Resources, Emmanuel Armah Kofi Buah, has defended the revised rate, citing global lithium price trends.
However, the Minority contends that global price considerations were already factored into the earlier 10% royalty, insisting that Barari DV Ghana Limited would remain profitable under the higher rate.
The Minority also rejected claims by members of the Majority Caucus that the 2023 agreement’s 10% rate was unlawful because the statutory minimum is 5%.
They highlighted previous examples of governments setting rates above or below the statutory minimum: in 2014, Newmont Ghana Gold Ltd agreed to a variable rate of 3–5% while the statutory rate was 5%, and in 2016, Goldfields Ghana Ltd had a similar 3–5% arrangement under Act 900.
They further point out that clause 20(a) of the revised lithium agreement itself recognises that royalty rates can be set “as prescribed by law or as may be agreed” between the company and the State.
“If the statutory framework is inadequate, the Minister still has the legal authority under Act 900 to prescribe a higher minimum rate,” the Caucus said, asserting that the government has ignored its own legal prerogatives.
Abandoning past principles
The Minority accused 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 such as the proposed chemical plant, and demanding stronger provisions to secure Ghana’s control of the lithium value chain.
They also noted that the government previously opposed agreements with free-zone companies that enjoyed 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 Caucus asked, highlighting a perceived reversal of principles that could undermine national interests.
Call for immediate reversal
The Minority is calling for the royalty rate to be immediately restored to 10%, arguing that even if the government cannot secure a superior deal, it should not approve an agreement that leaves Ghanaians 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.
