Lithium Deal Withdrawal Validates Minority Concerns Says Juaben MP

Francis Kwabena Owusu-Akyaw, Member of Parliament (MP) for Juaben and a member of Parliament’s Lands and Natural Resources Committee, says the government’s decision to withdraw the lithium agreement from Parliament confirms the validity of concerns raised by the Minority about serious gaps in the proposed deal.

Speaking on the Asaase Breakfast Show on Thursday, the MP said the document laid before Parliament “fell short of the standards and benefits Ghana deserves,” particularly when measured against the earlier agreement signed in October 2023 under the previous administration. He identified several critical deficiencies in the revised agreement, including the absence of a guaranteed royalty rate, omissions relating to the amended Growth and Sustainability Levy, and failure to comply with basic regulatory requirements.

“Even the stamping and witnessing requirements under Legislative Instrument (L.I.) 2176 were not met. The document was not ready for parliamentary consideration,” Owusu-Akyaw stated.

The MP pointed out that while the earlier agreement secured a 10 percent royalty for the state, the new version mentioned no specific figure. He said the Majority instead cited a repealed provision from 2010 to justify a 5 percent rate. The law they relied on was repealed in 2015, he insisted, adding that the minister must bring back an agreement that matches or improves upon the 2023 terms.

Owusu-Akyaw also highlighted concerns from chiefs and community leaders in Mankessim, who petitioned Parliament to ensure the deal benefits local residents and restores livelihoods affected by preliminary assessments conducted by the company. He noted that civil society groups have also petitioned the Committee and will be consulted as part of the renewed process.

The withdrawal is a humble pie, he remarked, adding that they now realise the issues raised are valid. The Minority will wait for the amended version, but will not support anything that gives Ghana less than what was negotiated previously, he said.

The MP added that the Minister is expected to bring a Legislative Instrument on a proposed sliding scale royalty regime before presenting the amended agreement.

The agreement covers lithium and other mineral extraction at Mankessim in the Central Region and was revised after Barari DV Ghana Limited requested adjustments to the lease terms due to a steep decline in global lithium prices. Prices reportedly dropped from around 3,000 dollars per tonne to approximately 630 dollars, making many lithium projects worldwide unprofitable.

Deputy Minister for Lands and Natural Resources, Alhaji Yusif Sulemana, announced the withdrawal on December 10, explaining the decision was influenced by concerns raised by civil society groups, industry experts, and MPs from both sides of the chamber.