Revised lithium deal laid before Parliament amid sharp global price drop

Minister of Lands and Natural Resources Emmanuel Armah-Kofi Buah has submitted a revised lithium mining agreement between the government and Barari DV Ghana Limited to Parliament for approval.

The deal, which covers the extraction of lithium and other minerals at Mankessim in the Central Region, was renegotiated after a steep decline in global lithium prices threatened the project’s viability.

Speaking to journalists in Accra on Tuesday, November 11, Mr Buah said the government was compelled to review the terms following a drastic price fall from about $3,000 per tonne at the time of the initial agreement to roughly $630.

“The proponents of the project wrote to say there was no way they could go forward with the old agreement,” the Minister explained. “Almost every lithium project around the world has been halted because the profitability is no longer feasible.”

He said the revised terms were meant to safeguard jobs, sustain the project, and protect the livelihoods of affected communities whose farmlands had already been acquired.

“Initially, the royalty rate was raised from 5 percent to 10 percent because of high prices. Now that prices have dropped, we’ve agreed to start at 5 percent and return to 10 percent when prices recover,” Mr Buah stated.

He added that the government’s approach aims to balance investor confidence with national interest. “We are thinking about jobs, empowering our people, and creating industries. This approach ensures the project moves forward while protecting Ghana’s long-term interests,” he said.

However, the Minority in Parliament has rejected the revised deal, insisting it mirrors the same agreement presented under the previous administration.

“With the greatest of respect, the terms of this new agreement are not different from what I presented to this House. I therefore pray that this laying be rejected,” former Lands Minister and Damongo MP Samuel Abu Jinapor told Parliament.

Minority Leader Alexander Afenyo-Markin accused the government of hypocrisy, saying, “You told the people of Ghana that the lithium agreement was bad. Today, you have brought back the same agreement, only reducing the royalties while claiming credit for it.”

In response, Majority Leader Mahama Ayariga urged Parliament to allow the legislative process to continue. Speaker Alban Bagbin clarified that the original deal had not been previously tabled and rejected, adding that the revised agreement would be referred to the relevant committee for scrutiny.

“Every member is allowed to visit and make contributions, come to the floor when the report is presented, and you can disagree with the committee. At the end of the day, we make the decision,” the Speaker said.