In response to growing public outcry, the government has withdrawn the renegotiated lithium agreement with Barari DV Ghana Limited.
The previous arrangement, which offered 10% in royalties, was more advantageous to Ghana, according to policy analysts and civil society organizations, who reacted negatively to the new deal with a suggested 5% royalty rate.
Deputy Minister of Lands and Natural Resources Alhaji Yusif Sulemana announced the withdrawal in Parliament on Wednesday, stating that the decision is required to allow the Ministry to thoroughly consult with all pertinent parties prior to resubmitting the agreement.
The Deputy Minister told members of parliament, “Mr Speaker, the lithium agreement was laid before this House on Tuesday, November 11, 2025, and referred to the Committee on Lands and Natural Resources. The withdrawal is to allow for further consultations before its re-presentation to this august House.”
The planned reduction in royalties, according to Majority Leader Mahama Ayariga, was motivated by the notable decline in worldwide lithium prices, which he claimed had reduced investor interest in Ghana’s developing lithium industry.
He claims that a more comprehensive plan to change Ghana’s royalty system for all mineral resources is being considered by the government. He pointed out that Ghana still receives relatively little royalties in spite of growing gold prices worldwide.
“The proposal is to restructure our entire royalty system to peg rates to world market prices. For example, if gold royalties are five per cent at 30 dollars, when the price rises to 200 dollars, royalties must rise accordingly,” Majority leader Ayariga said.
Frank Annoh-Dompreh, the minority chief whip, welcomed the government’s decision to remove the renegotiated lithium deal from Parliament, calling it a crucial step in reversing the nation’s downward trajectory.
“Our colleagues are eating humble pie, and there is no shame in it,” he said, referring to the action as a sign that the Majority had finally acknowledged popular misgivings about the pact.
Annoh-Dompreh urged the government to take advantage of the withdrawal to create a strong strategic framework for Ghana’s lithium industry, highlighting his experience in environmental activism.
He mentioned Indonesia’s dominant position in lithium processing as well as worldwide trends in mineral exploitation.
He emphasized that Ghana cannot become just a raw resource exporter. He stated that the nation must give value addition top priority since lithium is now essential to renewable energy technology, such as solar panels and battery systems.
In order to make sure that Ghana maximizes the value of its mineral wealth, especially emerging minerals like lithium, the withdrawal is anticipated to pave the way for new discussions between government representatives, mining companies, specialists, and civil society organizations.
Source: newsthemegh.com