Parliament of Ghana has approved a new lithium mining agreement between the Government of Ghana and Barari DV Ghana Limited, introducing a sliding-scale royalty system designed to increase state revenue in line with global market prices.
The agreement, ratified on Thursday, March 19, 2026, sets a maximum royalty rate of 12 percent, with returns expected to rise when international lithium prices are favourable.
Presenting the details of the arrangement to the House, Minister for Lands and Natural Resources, Emmanuel Armah-Kofi Buah, underscored the financial benefits embedded in the revised framework.
“In the current dispensation, and given the global market price of lithium, Ghana will get 12 percent royalties due to the sliding scale legislation that has matured into law,” he stated.
According to the Minister, the pricing-linked royalty model ensures the country earns more during periods of strong commodity performance, marking a shift from fixed-rate systems that often limit state gains.
Beyond royalties, the agreement also establishes a 1 percent community development fund to support local projects, particularly in affected areas. The mining lease spans 15 years and is subject to renewal under the Minerals and Mining Act, 2006 (Act 703).
The deal covers lithium exploration and extraction activities in Mankessim within the Mfantsiman Municipality in the Central Region, following its earlier submission to Parliament in December 2025 in line with constitutional requirements.
Before its approval, the agreement underwent scrutiny by the Committee on Lands and Natural Resources, which engaged key stakeholders including the Minerals Commission, the Environmental Protection Agency, and the Minerals Income Investment Fund.
Despite these processes, the Minority in Parliament strongly opposed the ratification, citing concerns over their exclusion from key considerations during the drafting phase.
Addressing the House, Effutu MP, Alexander Afenyo-Markin, declared the Minority’s firm stance against the deal.
“We, the 87 Minority, vote en bloc against this [lithium] agreement to the extent that the Lands Minister did not carry our concerns on board and insist on carrying the report in its current form and shape,” he stated.
He added that the caucus was unwilling to support the agreement under its current terms.
Notwithstanding the opposition, the Majority carried the motion, paving the way for what government describes as a more responsive and beneficial framework for managing Ghana’s emerging lithium resources.
