Lithium agreement has been reintroduced in a better form — Lands Minister

The Minister for Lands and Natural Resources, Emmanuel Armah Kofi Buah, has stated that the government has reintroduced the lithium agreement in Parliament in an improved form.

The deal was earlier withdrawn after the Minority and some civil society organisations raised concerns about the royalty regime and long-term benefits to the state and host communities.

Critics argued that the revised agreement, which reduced the royalty from 10 percent to five percent due to falling global lithium prices, exposed Ghana to losses when prices rebound.

The agreement relates to lithium and other associated minerals at Mankessim in the Central Region, commonly referred to as the Ewoyaa lithium project.

Speaking to the media after laying the agreement in Parliament on Friday, December 19, the minister said the new framework introduces a sliding-scale royalty regime that protects the state during price booms while offering relief to investors during downturns.

“I have brought an elaborate regulation that gives us a sliding scale agreement, which allows the state to capture the benefit in good times and also automatically adjusts to lower royalties when prices tumble,” he said.

He explained that under the revised deal, royalties could rise beyond the initial 10 percent to as high as 12 percent when lithium prices exceed certain thresholds, potentially saving the country hundreds of millions of dollars.

The minister also announced the inclusion of new infrastructure and community-focused provisions, which he said were absent in the 2023 agreement.

“For the first time, we have a one percent Community Development Fund dedicated to the host community, independent of central government, to support roads, hospitals and schools even after the resource is depleted,” he stated.

Armah Kofi-Buah expressed confidence that the enhanced agreement balances investor certainty with national interest and would serve as a model for future mineral agreements.