A bombshell revelation has emerged regarding Ghana's lithium deal: the original agreement included an unlawful royalty rate. This has sparked a heated debate, and we're here to break it down for you.
Collins Dauda, Chairman of the Lands and Natural Resources Committee, has brought to light that the initial agreement between the Akufo-Addo administration and Barari DV Ghana Limited stipulated a 10% royalty rate. However, this rate directly contradicted Ghana's existing legal framework.
According to the Majority Caucus in Parliament, the Minerals and Mining (Amendment) Act of 2010 clearly mandates a fixed royalty rate of 5% for all mining companies. This means the original 10% provision was, in their view, unlawful. Think of it like this: the law sets the rules, and everyone, including the government, must play by them.
This controversy arose following the presentation of a revised lithium agreement by the Minister for Lands and Natural Resources, Emmanuel Armah Kofi-Buah. The new agreement aligns with the legally mandated 5% royalty rate.
But here's where it gets controversial... The Minority has strongly criticized the revised agreement, arguing that the new terms are less favorable to the state compared to the original deal. This highlights a fundamental disagreement on what constitutes a fair and beneficial agreement for Ghana.
Addressing journalists in Accra on November 25, 2025, Collins Dauda emphasized Parliament's commitment to ensuring that all mining contracts adhere strictly to the law. He stated that the government is actively reviewing laws and policies related to mining to ensure alignment with current agreements and national interests. He further added, "We expect the laws to be obeyed. We cannot make laws expecting implementation and obedience and, at the same time, do something that runs against the law.โ
Dauda also highlighted Parliament's role as the gatekeeper, ensuring clarity, consistency, and proper oversight in the mining sector through upcoming policy and legislative reforms.
Meanwhile, the government has submitted the revised lithium mining agreement to Parliament for approval. This updated agreement pertains to the extraction of lithium and associated minerals in the Central Region. It was prompted by a request from Barari DV Ghana Limited to review the lease terms due to a significant drop in global lithium prices, which had impacted the project's financial viability.
And this is the part most people miss... The situation underscores the importance of legal compliance and transparency in natural resource management. It also raises questions about the balance between attracting foreign investment and safeguarding national interests.
What are your thoughts on this? Do you believe the revised agreement is a fair deal for Ghana? Share your opinions in the comments below โ let's discuss!
