Government withdraws revised lithium mining agreement for further consultations

The government has withdrawn the revised lithium mining agreement from Parliament to allow for additional consultations with key stakeholders.

Deputy Lands and Natural Resources Minister Yusif Sulemana explained on Wednesday, December 10, that the withdrawal “is to enable the Ministry of Lands and Natural Resources to undertake further consultations with very relevant stakeholders prior to representing it to this very important house.”

The agreement, initially presented by Lands and Natural Resources Minister Emmanuel Armah-Kofi Buah, covers lithium and other mineral mining at Mankessim in the Central Region. The deal was revised at the request of Barari DV Ghana Limited to adjust lease terms after a sharp drop in global lithium prices affected the project’s viability. Minister Buah noted that lithium prices fell from about $3,000 per tonne to around $630, rendering most lithium projects worldwide unprofitable.

The government also renegotiated royalty terms, lowering the starting rate from 10% to 5%, with the plan to return to 10% when prices recover.

The revised agreement has faced criticism from the Minority in Parliament. Former Lands Minister and Damongo MP Samuel Abu Jinapor argued that it is largely unchanged from the previous version and urged its rejection. Minority Leader Alexander Afenyo-Markin also accused the government of inconsistency over the deal.

Majority Leader Mahama Ayariga defended the agreement, urging parliamentary committees to review it and make recommendations before final approval. Speaker Alban Bagbin stated that the matter would be referred to the appropriate parliamentary committee for further scrutiny.

The withdrawal aims to ensure all concerns are addressed, allowing the project to proceed in a way that safeguards local communities, creates jobs, and supports industrial development in the region.