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The government has withdrawn the revised lithium mining agreement from Parliament to allow for broader consultations with key stakeholders, following concerns raised over the new terms of the deal.
Deputy Minister for Lands and Natural Resources, Yusif Sulemana, who announced the decision on the floor of Parliament on Wednesday, December 10, said the withdrawal is intended to create space for a more inclusive review.
“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 presenting it to this very important House,” he explained.
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The agreement initially presented by Lands Minister Emmanuel Armah-Kofi Buah covers the mining of lithium and associated minerals at Mankessim in the Central Region.
It was revised after Barari DV Ghana Limited, the company at the centre of the project, requested an adjustment to its mining lease. The company cited a steep decline in global lithium prices, which it said had made the project financially unviable under the original terms.
Lithium prices have plunged from about $3,000 per tonne to around $630 per tonne, making several global lithium operations unprofitable. To respond to this market shift, the government renegotiated key fiscal terms, including lowering the royalty rate from 10% to 5%, with a planned return to 10% when prices recover.
The revised deal has faced strong criticism from the minority in Parliament.
Former Lands Minister and Damongo MP Samuel Abu Jinapor argued that the new agreement does not significantly differ from the one previously rejected.
Minority Leader Alexander Afenyo-Markin similarly accused the government of inconsistency, questioning the rationale for renegotiating terms in favour of the investor.
Despite the objections, Majority Leader Mahama Ayariga defended the government’s approach, insisting that Parliament must allow the relevant committees to examine the agreement thoroughly before making a final decision.
Speaker Alban Bagbin confirmed that the document would be referred to the appropriate parliamentary committee once it is re-laid before the House.
The withdrawal is expected to pave the way for broader consultations involving local communities, experts, civil society organisations, and industry stakeholders.
The government says the goal is to craft a deal that:
- Protects national interest
- Guarantees fair fiscal returns
- Secures local participation
- Creates jobs, and
- Supports industrial development in the Central Region.
The revised agreement will be resubmitted to Parliament after consultations are completed.
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