Government withdraws revised lithium deal for further stakeholder consultations
The government has pulled back the amended lithium mining agreement from Parliament to enable additional engagements with major interest groups.
Addressing the House on Wednesday, December 10, Deputy Minister for Lands and Natural Resources, Yusif Sulemana, stated, “The reason for the withdrawal of this agreement 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 — first laid before Parliament by the sector minister, Emmanuel Armah-Kofi Buah — relates to the extraction of lithium and other minerals at Mankessim in the Central Region.
It was revised after Barari DV Ghana Limited requested changes to the lease terms, citing the steep decline in global lithium prices, which has affected the economic viability of the project.
Minister Buah had earlier highlighted that lithium prices had dropped significantly, falling from about $3,000 per tonne to roughly $630 per tonne, rendering many lithium ventures around the world unprofitable.
As part of the renegotiations, government adjusted the royalty structure, reducing the initial rate from 10 percent to 5 percent, with plans to revert to 10 percent when market prices improve.
The revised deal has, however, been met with opposition from the Minority in Parliament. Former Lands Minister and Damongo MP, Samuel Abu Jinapor, insisted that the updated agreement mirrors the previous one that was submitted to the House, calling for its rejection.
