The Coalition for Accountable Resource Governance has strongly opposed the proposed five percent royalty rate in Ghana’s renegotiated Ewoyaa lithium agreement, describing the reduction as undermining national interests.
CARG-Ghana issued a statement criticizing the government’s decision to lower the rate from 10 percent negotiated under the previous administration. The coalition argues the adjustment represents a significant setback for securing optimal value from Ghana’s emerging green mineral sector.
The controversy centers on the mining lease agreement between Ghana and Barari DV Ghana Limited, a subsidiary of Atlantic Lithium, for the Ewoyaa Lithium Project in the Central Region. Government officials, including Lands and Natural Resources Minister Emmanuel Armah-Kofi Buah, have defended the five percent rate as legally mandated under existing mining legislation.
CARG-Ghana disputed this interpretation, stating the Minerals and Mining Amendment Act of 2015 allows negotiation beyond the earlier three to six percent band. The coalition described the rate as open-ended and subject to negotiations rather than fixed at five percent.
The group referenced statements from the National Democratic Congress during its 2023 opposition period, when party officials criticized the 10 percent rate as insufficient and pledged to secure higher benefits if elected. CARG-Ghana said the current proposal contradicts those commitments.
Parliament’s Lands and Natural Resources Committee has confirmed the five percent rate remains technically enforceable because no instrument exists to guide application of different royalty rates. Committee Chairman Collins Dauda indicated the government plans to review mining laws and policies.
Traditional leaders from Ewoyaa, Krampakrom and surrounding communities have also opposed the reduction, calling it a shortchange to affected areas. Chiefs said they learned about the consultation process only through newspaper notices, coinciding with a training workshop by Friends of the Nation and the Africa Centre for Energy Policy.
The mining company requested the review citing sharp declines in global lithium prices. However, CARG-Ghana argued that market fluctuations should not determine fixed percentages in long-term mineral agreements, referencing Atlantic Lithium’s 2023 feasibility study that projected prices at 1,587 dollars per tonne.
Policy think tank IMANI Africa also urged Parliament to withhold ratification, stating independent modeling shows the project remains highly profitable even at current prices. IMANI estimated that reducing the royalty from 10 to five percent transfers approximately 17.5 million dollars annually from Ghana to the company.
The coalition called on Parliament to exercise its constitutional authority under Article 268 to safeguard national resources and reject the deal in its current form. CARG-Ghana urged establishment of a minimum 10 percent rate for future mineral contracts.
Minister Buah has confirmed cabinet will approve comprehensive guidelines to provide clarity on royalty arrangements for all minerals. The new framework aims to ensure transparency while protecting Ghana’s natural resource interests.
Atlantic Lithium laid off over 100 workers in November due to ratification delays, reducing its workforce from 167 to 62 employees. Parliamentary approval represents the final regulatory hurdle before the project can proceed to a Final Investment Decision expected in the third quarter of 2025.
