The government has withdrawn the revised lithium mining agreement from Parliament to allow for additional consultations with key stakeholders.
Deputy Minister for Lands and Natural Resources, Yusif Sulemana, announced the decision on Wednesday, December 10, explaining that the move would enable the Ministry 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 extraction at Mankessim in the Central Region. It was revised after Barari DV Ghana Limited, the company involved, requested adjustments to the lease terms due to a steep decline in global lithium prices, which has heavily affected the project’s viability. Prices reportedly dropped from around $3,000 per tonne to approximately $630, making many lithium projects worldwide unprofitable.
In response, the government renegotiated the royalty structure, reducing the initial rate from 10 percent to 5 percent, with plans to restore the original rate when prices rebound.
The revised deal has drawn criticism from the Minority in Parliament. Former Lands Minister and Damongo MP Samuel Abu Jinapor argued that the new agreement is no different from the previous version and should be rejected. Minority Leader Alexander Afenyo-Markin also accused the government of inconsistency in handling the deal.
Majority Leader Mahama Ayariga defended the agreement, urging Parliament to allow the relevant committees to scrutinize it and make informed recommendations. Speaker Alban Bagbin confirmed that the agreement would be referred to the appropriate committee for further examination.
The government says the withdrawal is intended to ensure that all concerns are addressed and that any eventual deal safeguards community interests, promotes job creation, and supports industrial development in the region.
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