Former Speaker of Parliament, Prof. Mike Oquaye, has expressed concerns regarding the lithium mining agreement between the Ghanaian government and Barari DV, questioning the equity of the royalty framework that supports the deal.
His remarks follow the government’s decision to withdraw the revised lithium agreement from Parliament on December 10, allowing for additional consultations with key stakeholders.
This withdrawal was prompted by objections from the Majority in Parliament, which contended that the 10 per cent royalty rate negotiated by the Akufo-Addo administration violates the Minerals and Mining (Amendment) Act, 2010, which stipulates a 5 per cent royalty for such concessions.
In an interview monitored by The Ghana Report on Channel One TV, Prof. Oquaye stated that the discussion should extend beyond the question of whether the royalty is set at 10 per cent or 5 per extraction of valuable natural resources.
He noted that it is concerning that Ghana continues to accept royalty limits that confine the country to a maximum of 5 per cent, despite the significant value of minerals such as lithium, gold, diamonds, and bauxite.
Prof. Oquaye proposed that Ghana should seek to negotiate for considerably higher minimum royalties to safeguard national interests better and ensure equitable returns from mineral extraction.
Prof. Oquaye stated, “The present withdrawal is quite interesting. Because some people have viewed it in the context of the royalty percentage, from 10% to 5%. But this 5% has existed for some tim”.
“It’s very painful to envisage that we have something that has got value. Then we say, when you take this commodity, which has got value, don’t give me more than 5%. But give me anything 5% downwards. That is what the cap means, and who does that? Honestly, we have not been fair to our nation at all. In terms of these gold, diamond, and bauxite matters at all. You can say I want at least 20%.”
The lithium agreement, initially presented to Parliament by the Minister for Lands and Natural Resources, Emmanuel Armah-Kofi Buah, pertains to the extraction of lithium and other minerals at Mankessim in the Central Region.
The agreement underwent revisions following a request from Barari DV Ghana Limited for modifications to the lease terms, pointing to a significant drop in global lithium prices that has impacted the project’s commercial viability.
