Parliament Reviews Renegotiated Lithium Mining Lease Agreement

Banku1 hour ago

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The Minister of Lands and Natural Resources, Mr. Emmanuel Amarh-Kofi Buah, has presented a renegotiated lithium mining lease agreement between the government and Barari DV Ghana Limited, the local subsidiary of Atlantic Lithium, to Parliament.

The agreement, covering the extraction of lithium and other minerals at Mankessim in the Central Region, was submitted to the House on Tuesday and subsequently referred to the Lands and Forestry Committee by Speaker Alban Kingsford Sumana Bagbin for detailed consideration and report.

Mr. Buah explained that the renegotiation of the lease, initially presented to the 8th Parliament, was prompted by a significant decline in lithium prices.

“The lease was first presented for ratification pursuant to Article 268(1) of the 1992 Constitution and Section 54 of Act 703, but it was not ratified before the House adjourned. At the time of the original negotiations, the price of lithium was about US$3,000. Since then, it has fallen to approximately US$630, placing the project at risk,” he said.

The government focused on three key areas during the renegotiation: adjusting the royalty rate, deferring Value Added Tax (VAT) on capital input, and evaluating the feasibility of the Saltpond Transhipment facility.

“Previously, the royalty rate, normally five percent as required by law, had been negotiated to 10 percent due to the high price of lithium. We have now agreed on a scaled royalty system that allows adjustments as the price fluctuates,” Mr. Buah explained, emphasising that the decision was taken in the best interest of the country.

However, the Minority in Parliament questioned the changes, arguing that the renegotiated agreement is not materially different from the one presented under the 8th Parliament, which had been rejected. Former Minister of Lands and Natural Resources and MP for Damongo, Mr. Samuel Abu Jinapor, described the current agreement as “worse” than the previous version, noting that the earlier agreement included a 13% carried interest, a 10% legal requirement, and a 30% floating share allocation to encourage local participation.

Speaker Bagbin stressed that the initial agreement had not been ratified and confirmed that the current agreement would follow the proper parliamentary process:

“Now it is being brought to Parliament, and we are referring it to the relevant committee for consideration and report,” he said.

The Lands and Forestry Committee will examine the agreement in detail, weighing both the government’s rationale and the concerns raised by the Minority, before submitting its report to Parliament for further deliberation.