- Government pulls revised lithium agreement for further stakeholder consultations
- Withdrawal follows concerns over falling global lithium prices and project viability
- Barari DV Ghana requested lease adjustments after price drop from $3,000 to $630/tonne
The government has withdrawn the revised lithium mining agreement from Parliament to enable further consultations with key stakeholders.
Addressing the House on Wednesday, December 10, Deputy Minister for Lands and Natural Resources Yusif Sulemana explained the decision, stating:
“The reason for the withdrawal of this agreement is to allow the Ministry of Lands and Natural Resources to engage in additional consultations with very relevant stakeholders before resubmitting it to this important House.”
The agreement, initially laid before Parliament by Lands Minister Emmanuel Armah-Kofi Buah, concerns the mining of lithium and other minerals at Mankessim in the Central Region.
The revision followed a request from Barari DV Ghana Limited to adjust the lease terms after a steep decline in global lithium prices, which has negatively impacted the economic viability of the project. Minister Buah earlier indicated that lithium prices had plunged from roughly $3,000 per tonne to about $630 per tonne, rendering many lithium operations unprofitable worldwide.
As part of the renegotiations, the government revised the royalty structure—reducing the initial rate from 10 percent to 5 percent, with the intention to restore it to 10 percent once market prices rebound.
The revised deal has, however, been met with resistance from the Minority in Parliament. Former Lands Minister and Damongo MP Samuel Abu Jinapor argued that the new agreement is essentially unchanged from the previous version and should be rejected. Minority Leader Alexander Afenyo-Markin also criticised the government, accusing it of inconsistency in its handling of the lithium agreement.
Still, Majority Leader Mahama Ayariga defended the revised deal, urging Parliament to allow the relevant committees to examine it and provide recommendations before any final decision is taken. Speaker Alban Bagbin indicated that the agreement would be referred to the appropriate committee for detailed scrutiny.
The withdrawal is intended to ensure that all stakeholder concerns are adequately addressed and that the project proceeds in a way that benefits local communities, protects national interests, creates jobs, and supports regional industrial development.
