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Former Speaker of Parliament, Prof. Mike Oquaye, has raised concerns over the lithium mining agreement between the government of Ghana and Barari DV, questioning the fairness of the royalty framework underpinning the deal.
Former Speaker of Parliament, Prof. Mike Oquaye, has raised concerns over the lithium mining agreement between the government of Ghana and Barari DV, questioning the fairness of the royalty framework underpinning the deal.
His comments come after the government withdrew the revised lithium agreement from Parliament on December 10 to allow for further consultations with key stakeholders.
The withdrawal followed objections from the Majority in Parliament, which argued that the 10 per cent royalty rate negotiated by the Akufo-Addo administration contravenes the Minerals and Mining (Amendment) Act, 2010, which sets a 5 per cent royalty for such concessions.
Speaking in an interview with Bernard Avle on Channel One
TV’s The Point of View on Monday, December 15, Prof. Oquaye said the debate should go beyond whether the royalty is set at 10 per cent or 5 per cent.
He argued that the existing royalty cap has long disadvantaged the country, especially in the exploitation of valuable natural resources.
According to him, it is troubling that Ghana continues to accept royalty limits that restrict the country to a maximum of 5 per cent, despite the high value of minerals such as lithium, gold, diamonds and bauxite.
Prof. Oquaye suggested that Ghana should negotiate for significantly higher minimum royalties to better protect national interests and ensure fair returns from mineral extraction.
Prof. Oquaye stated, “The present withdrawal is quite interesting. Because some people have viewed it in the context of the royalty percentage, from 10% to 5%. But this 5% has existed for some time.
“It’s very painful to envisage that we have something that has got value. Then we say, when you take this commodity, which has got value, don’t give me more than 5%. But give me anything 5% downwards. That is what the cap means, and who does that? Honestly, we have not been fair to our nation at all. In terms of these gold, diamond, and bauxite matters at all. You can say I want at least 20%.”
The lithium agreement, originally laid before Parliament by the Minister for Lands and Natural Resources, Emmanuel Armah-Kofi Buah, relates to the mining of lithium and other minerals at Mankessim in the Central Region.
The agreement was revised after Barari DV Ghana Limited requested changes to the lease terms, citing a sharp decline in global lithium prices that has affected the commercial viability of the project.
