The government has withdrawn the renegotiated lithium agreement between the state and Barari DV Ghana Limited for broader stakeholder consultations.
The agreement, which proposed a royalty rate of five per cent, had attracted widespread criticism from stakeholders, including civil society organisations, arguing that the previous agreement with a 10 per cent royalty rate offered the country a better deal.
Alhaji Yusif Sulemana, Deputy Minister of Lands and Natural Resources, announced the withdrawal on the floor of the House on Wednesday.
“Mr Speaker, the lithium agreement was laid before this House on Tuesday, November 11, 2025, and was referred to the Committee on Lands and Natural Resources for consideration and report. The reason for the withdrawal is to enable the Ministry of Lands and Natural Resources to undertake further consultations with relevant stakeholders before representing it to this important House,” Alhaji Sulemanan stated.
Mr Mahama Ayariga, the Majority Leader, stated that the reduction in the royalty rate from 10 per cent to five per cent was influenced by the decline in world market prices for lithium.
He explained that the decline in prices of the commodity had discouraged investor interest in lithium mining in Ghana, hence the need to lower the rate to attract investment.
Mr Ayariga further hinted that the government intended to present a proposal to Parliament for a comprehensive review of royalties on all natural resources.
He observed that despite the rise in gold prices globally, Ghana continues to receive relatively low royalties from its gold resources.
“The proposal is to change and structure our entire royalty regime to be pegged to world market prices of the minerals.
“So that, for instance, if we are taking five per cent for gold, and the gold price is 30 dollars, when the gold price goes to 200 dollars, we must be taking much higher,” Mr Ayariga said.
The withdrawal of the lithium agreement is expected to pave the way for renewed dialogue among government, industry players, and civil society groups to ensure that Ghana secures maximum benefits from its mineral resources.
