The government has withdrawn the revised lithium mining agreement from Parliament to allow for further consultations with key stakeholders.
Speaking on the decision in Parliament on Wednesday, December 10, Deputy Lands and Natural Resources Minister, Yusif Sulemana, explained, “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, originally presented to Parliament by Lands and Natural Resources Minister Emmanuel Armah-Kofi Buah, covers the mining of lithium and other minerals at Mankessim in the Central Region.
The deal was revised following a request by the company, Barari DV Ghana Limited, to adjust the lease terms due to a sharp drop in global lithium prices, which has affected the project’s viability.
Minister Buah had previously noted that global lithium prices had fallen from about $3,000 per tonne to around $630 per tonne, making most lithium projects worldwide unprofitable.
The government had also renegotiated royalty terms, lowering the starting rate from 10 percent to 5 percent with the intention of returning to 10 percent when prices recover.
The deal has faced criticism from the Minority in Parliament. Former Lands Minister and MP for Damongo, Samuel Abu Jinapor, argued that the revised agreement is no different from the previous one presented to Parliament, urging that it be rejected.
Minority Leader Alexander Afenyo-Markin also criticised the government, accusing it of inconsistency over the lithium deal.
The withdrawal aims to ensure that all concerns are addressed and that the project proceeds in a manner that protects the interests of local communities and the nation, while also creating jobs and supporting industrial development in the region.
