Parliament Holds Off on Lithium Deal Pending Public Consultation and Legal Review

Parliament’s Committee on Lands and Natural Resources has announced it will not approve the new lithium agreement until broad public consultations are completed and the Minerals and Mining Act is reviewed to address concerns over royalties.

Speaking at a press conference in Accra on Tuesday, Committee Chairman Collins Dauda emphasized that the five per cent royalty set by law remains the only enforceable rate. Any higher rate would require an amendment to the Minerals and Mining Act.

Mr Dauda explained that a previous proposal for a 10 per cent royalty in the 2024 agreement between Ghana and Barari DV Ghana Limited could not proceed because it was inconsistent with existing law. The Committee had advised the former minister to amend the Minerals and Mining Act so that the rate in the agreement would align with Act 703, as amended by Act 794. He noted that no report on the 2024 agreement had been submitted to Parliament for consideration.

He also dismissed claims that the Minority had rejected the previous deal as misleading, clarifying that only Barari DV Ghana Limited would have paid the 10 per cent royalty under the old arrangement, while other major mining companies, including Newmont, Gold Fields, and AngloGold, would have continued paying five per cent. The Committee viewed this as unfair and discriminatory, stressing the need for a level playing field across the sector.

Regarding the new agreement submitted by the Minister for Lands and Natural Resources, Armah-Kofi Buah, Mr Dauda said the document does not specify a royalty rate, instead referring to the five per cent provided by law. He noted that revenue from a 5 per cent royalty differs significantly from a 10 per cent rate, and any increase would require legislative amendment.

The Committee has launched a public consultation process on the agreement, which was advertised from November 13 to November 27, inviting memoranda from civil society, NGOs, technical experts, and interested individuals. The Committee also plans to invite stakeholders with expertise to help analyze the agreement before any decision is made.

Mr Dauda highlighted that the 2025 Budget, at paragraph 475, outlines the government’s plan to review the minerals and mining policy and Act 703. He said the Committee prefers that any amendment to the Act be brought to Parliament alongside the agreement so both can be considered together. “We make the laws and we expect the laws to be implemented. We cannot make laws and then take actions that go against them,” he said.

Majority Chief Whip Rockson-Nelson Dafeamekpor supported the Committee’s stance, emphasizing that no one should pressure the government to rush a decision without resolving the legal issues.

The Committee stressed that the ongoing process aims to safeguard the interests of communities living within lithium concession areas and protect the country’s broader interests.