Ghana’s Lithium Deal Hits Parliament Storm: ‘Illegal Royalty, Fix It Now
According to the Majority in Parliament, the 10 percent royalty deal that was struck by the Akufo-Addo government with Barari DV Ghana Limited for the purpose of lithium mining constituted a violation of Ghana’s legislative framework. This is because the Minerals and Mining (Amendment) Act, 2010, specifies a fixed royalty rate of 5 percent. The opposition party, the Minority, disagrees with the new agreement that was submitted by the Minister for Lands and Natural Resources because they believe that it is not as advantageous to the state; yet, the deal is now in accordance with the legally mandated rate of five percent. Collins Dauda, who serves as the chairman of the Lands and Natural Resources Committee, declared that the legislative branch is reviewing the laws pertaining to mining in order to bring them into alignment with the new agreement. The purpose of this review is to guarantee compliance and to ensure that all mining agreements are in accordance with the law and policy, thereby providing clarity, consistency, and oversight.
