The Coalition for Accountable Resource Governance (CARG-Ghana) has raised strong objections to the proposed 5% royalty rate in the renegotiated Ewoyaa lithium agreement, arguing that the adjustment undermines Ghana’s long-term interests and contradicts previous commitments made by the current administration.
In a statement issued by the coalition, they stated that the reduction from the earlier 10% rate negotiated under the previous government represents a major setback for the country’s efforts to secure optimal value from its emerging green mineral sector.
CARG-Ghana criticised the explanations offered by government officials, including the Minister of Lands and Natural Resources, Emmanuel Armah-Kofi Buah, and the Chair of Parliament’s Lands and Natural Resources Committee, Collins Dauda, describing their interpretation of the law as inaccurate.
According to the coalition, the Minerals and Mining (Amendment) Act, 2015 (Act 900) gives Ghana the authority to negotiate royalty rates beyond the earlier 3%–6% band provided under Act 703. Act 900, it argued, makes the rate “open-ended and subject to negotiations,” meaning the country is not restricted to a fixed 5%.
The coalition referenced a 2023 press conference by the National Democratic Congress (then in opposition), where the party criticised the 10% rate as insufficient and pledged to secure higher benefits if elected. CARG-Ghana said the current proposal contradicts that promise.
Concerns over fairness and policy consistency
CARG-Ghana questioned the government’s claim that maintaining a 5% rate is necessary to ensure fairness with traditional minerals such as gold and bauxite. It said lithium, as a strategic green mineral with significant long-term economic value, should not be treated the same as older mineral regimes.
The coalition also criticised the argument that falling global lithium prices justify lowering the royalty rate, noting that global market shifts should not determine fixed percentages in long-term mineral agreements.
It pointed to the Atlantic Lithium Definitive Feasibility Study (June 2023), which used a long-term price projection of $1,587 per tonne, and said negotiating based on current fluctuations creates unnecessary risk.
Call for parliamentary action
The group urged Parliament to reject the deal in its current form and exercise its constitutional authority under Article 268 to safeguard Ghana’s resources. It also called for an amendment to the royalty provisions to establish a minimum 10% rate for future mineral contracts.
CARG-Ghana encouraged the public, civil society, and the media to closely monitor the ongoing lithium discussions, arguing that Ghana cannot afford to repeat past mistakes associated with the management of gold, bauxite, diamonds, oil and other natural resources.
Source: asaaseradio.com
