Ewoyaa traditional leaders criticise lithium royalty slash
Traditional authorities of Ewoyaa, Krampakrom and surrounding communities in the Central Region have dismissed the government’s decision to reduce Ghana’s lithium royalty rate from 10% to 5%, describing the move as unfair and detrimental to communities expected to bear the impact of the mining activity.
The decision follows a request by mining company Barari Ghana Limited for a revision of its mining lease conditions, citing a significant drop in global lithium prices as the basis for the appeal.
According to the chiefs, they only became aware of the consultation process after seeing a public notice inviting stakeholder submissions in the newspapers. This coincided with a Resource Index Dashboard training workshop organised on Wednesday, November 26, by Friends of the Nation, a local NGO, in collaboration with the Africa Centre for Energy Policy (ACEP).
In an interview with Citi News on Thursday, November 27, the secretary to the chief of Krampakrom, Charles Paa Grant, called on the government to suspend the new 5% rate and ensure broader engagement with all relevant stakeholders.
“To cut to the chase, I think we should stick to the 10% because they haven’t specified whether it will be by next year or within a few years. If prices increase, they may reverse it or raise it to any amount. But they are insisting on 5%, which is short-changing,” he said.
The chiefs cautioned that the reduced royalty rate could negatively affect anticipated development initiatives and the provision of social infrastructure in the mining-affected areas.
Community members have also expressed worry over the project’s effect on their livelihoods, even before large-scale operations commence. Mostly farmers, they say their farming activities have already been disrupted.
“They stopped us from working. We have not been farming in our communities since last year. They have deprived us of building, farming, and doing many other things. Within that time, what are we going to do? Are they going to compensate us?” one resident asked.
Source: CNR
