Lithium Royalties inadequate and unfair to Ghana – Prof. Oquaye

Former Speaker of Parliament, Prof. Mike Oquaye, has expressed concerns over the lithium mining agreement between the Government of Ghana and Barari DV, questioning the equity of the royalty framework governing the deal.

His comments follow the government’s decision to withdraw the revised lithium agreement from Parliament on December 10 to allow for broader consultations with stakeholders. The move came after objections from the Majority in Parliament, which argued that the 10 per cent royalty rate negotiated under the Akufo-Addo administration conflicts with the Minerals and Mining (Amendment) Act, 2010, which caps royalties at 5 per cent.

Speaking in an interview with Bernard Avle on Channel One TV’s The Point of View on Monday, December 15, Prof. Oquaye said the discussion should not be limited to whether the royalty rate is 10 per cent or 5 per cent. Instead, he argued that the existing legal framework itself has long disadvantaged Ghana.

According to him, it is concerning that the country continues to accept royalty limits that restrict earnings from highly valuable natural resources such as lithium, gold, diamonds and bauxite. He described the 5 per cent cap as unfair and inadequate for a country seeking meaningful returns from mineral exploitation.

“The present withdrawal is quite interesting because some people are viewing it purely in terms of the royalty percentage—from 10 per cent to 5 per cent. But this 5 per cent has existed for a long time,” Prof. Oquaye said. “It is painful to imagine that we have a commodity of great value, yet we tell those who take it not to give us more than 5 per cent. That is what the cap means, and it is not fair to our nation at all. For minerals like gold, diamonds and bauxite, you can say you want at least 20 per cent.”

He suggested that Ghana should renegotiate its mineral agreements to secure significantly higher minimum royalties in order to better protect national interests and maximise benefits from its natural resources.

The lithium agreement, initially presented to Parliament by the Minister for Lands and Natural Resources, Emmanuel Armah-Kofi Buah, concerns the mining of lithium and other minerals at Mankessim in the Central Region. The deal was subsequently revised after Barari DV Ghana Limited requested changes to the lease terms, citing a sharp decline in global lithium prices that has affected the project’s commercial viability.