Traditional leaders of Ewoyaa, Krampakrom, and surrounding communities in the Central Region have strongly opposed the government’s decision to reduce Ghana’s lithium royalty rate from 10% to 5%, describing the move as a major shortchange to communities directly affected by the country’s emerging lithium industry.
The government’s adjustment follows a request from Barari Ghana Limited, the company developing the Ewoyaa Lithium Project, which pushed for a review of its mining lease terms due to a significant drop in global lithium prices.
But the chiefs say the decision was made without proper stakeholder engagement.
According to them, they only became aware of the consultation process when a public notice calling for inputs appeared in the national dailies—coincidentally on the same day a Resource Index Dashboard training workshop was held on Wednesday, November 26. The training was organised by Friends of the Nation and the Africa Centre for Energy Policy (ACEP), both of which have been monitoring resource governance in the area.
Charles Paa Grant, secretary to the chief of Krampakrom, called on the government to suspend the revised rate and embark on meaningful engagement with affected communities.
“To cut to the chase, I think we should stick to the 10% because they haven’t specified whether it will be by next year or within a few years. If prices increase, they may reverse it or raise it to any amount. But they are insisting on 5%, which is short-changing,” he said.
The traditional authorities warned that the halved royalty rate would significantly reduce the funds available for community development, including schools, roads, health facilities, and livelihood support programmes that residents have long been expecting from the lithium project.
Meanwhile, community members are already expressing frustration over the impact of mining preparatory activities on their livelihoods. Predominantly farmers, they say they have been barred from using their lands even before full-scale mining begins.
“They stopped us from working. We have not been farming in our communities since last year. They have deprived us of building, farming, and doing many other things. Within that time, what are we going to do? Are they going to compensate us?” one resident lamented.
The chiefs and residents are urging government to reconsider the royalty reduction, compensate affected persons, and ensure that local voices are central in all negotiations regarding Ghana’s fast-growing lithium sector.
