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New lithium deal bad for Ghana — Minority

Minority warns Ghana’s new lithium agreement threatens national interest and future revenues

by The Custodian News
November 27, 2025
in News
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Lithium Minority
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The Minority New Patriotic Party (NPP) in Parliament has issued a scathing condemnation of the government’s renegotiated mining lease with Barari DV Ghana Limited, describing the new terms as a “complete compromise of Ghana’s national interest.”

In a strongly worded statement, signed by Mr Kwaku Ampratwum-Sarpong, Member of Parliament for Mampong and Ranking Member of the Lands and Natural Resources Committee, the Caucus accused the government and its Majority of “propaganda, deception, and double standards,” particularly over the decision to reduce the previously agreed 10% royalty rate for lithium to 5%.

This deal, he insisted, leaves Ghanaians short-changed in the exploitation of a strategic mineral critical to the global energy transition.

 Minority demands answers

The Minority recalled that in October 2023, the previous administration secured what they described at the time as enhanced fiscal and developmental terms for the same Barari DV Ghana project. These included:

A 10% royalty rate

13% free carried interest (above the statutory 10%)

At least 30% Ghanaian equity participation through the Minerals Income Investment Fund (MIIF) and listing on the Ghana Stock Exchange

A 1% Community Development Fund

A 1% Growth and Sustainability Levy

A requirement for the company to establish a chemical plant to promote local value addition

The Minority noted the irony that the National Democratic Congress (NDC), then in opposition, had criticised the 10% royalty in 2023 as too low, describing it as “a celebration of mediocrity,” and argued that Act 900 allowed for even higher rates during periods of windfall profits.

“Today, when given the opportunity to negotiate properly, the NDC Government has negotiated for a reduction from 10% to 5%. So, we ask: what has changed?” the statement queried.

Government’s explanation rejected

Minister for Lands and Natural Resources Emmanuel Armah-Kofi Buah has reportedly justified the lower royalty rate by citing a drop in global lithium prices.

But the Minority insists that the 10% rate originally agreed already accounted for market volatility and still guaranteed strong company profits.

They further dismissed the Majority’s argument that a 10% royalty was “illegal” under Act 900, noting that Ghana has signed agreements in the past with rates both above and below the statutory 5%.

“In the revised agreement itself,” the statement argues, “Clause 20(a) clearly allows royalties as prescribed by law or as may be agreed between the Company and the Government.’ So the claim of illegality is baseless.”

Accusations of hypocrisy and broken promises

The Caucus also accused the government of abandoning its own public commitments on green minerals.

They highlighted a long list of positions the current administration championed while in opposition—only to reverse them now:

  • Opposition to using existing gold-oriented mining laws for green minerals
  • Advocacy for joint venture arrangements instead of the “colonial” mining lease model;
  • Criticism of the weak provisions on establishing a chemical plant;
  • Complaints that the earlier lease lacked strong value-chain control for Ghana;
  • Claims that Barari DV’s status as a Free Zones company made the deal unbeneficial;

“Today, what has changed?” the statement repeatedly asked, accusing the government of contradicting its own earlier rhetoric.

Minority demands immediate reversal to 10% Royalty

The Minority Caucus insists that at a minimum, the government must maintain the originally agreed 10% royalty rate, which the company had already accepted.

“If the government cannot give us a better deal, it should not enter into an agreement that leaves the Ghanaian people—true owners of our mineral resources—worse off,” the statement stressed.

The Caucus vowed to continue holding the government accountable, promising to “fight for the welfare and well-being of our people.”

Post Views: 105
Tags: Emmanuel Kofi Armah-BuahEwoyaa Lithium
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