What's Happening?
The Coalition for Accountable Resource Governance (CARG-Ghana) has expressed strong opposition to the Ghanaian government's decision to reduce the royalty rate for the Ewoyaa Lithium Project from 10 percent to five percent. This decision is part of a renegotiated
agreement with Barari DV Ghana Limited, a subsidiary of Atlantic Lithium. CARG-Ghana argues that this reduction undermines national interests and represents a setback in securing optimal value from Ghana's emerging green mineral sector. The coalition disputes the government's interpretation of the Minerals and Mining Amendment Act of 2015, which they claim allows for negotiation beyond the three to six percent band. Traditional leaders and policy think tanks like IMANI Africa have also voiced concerns, urging Parliament to reject the deal and establish a minimum 10 percent rate for future mineral contracts.
Why It's Important?
The reduction in the royalty rate has significant implications for Ghana's economy and its ability to benefit from its natural resources. By lowering the rate, the government risks losing substantial revenue that could be used for national development. The decision has sparked criticism from various stakeholders, including traditional leaders and policy think tanks, who argue that the reduction favors the mining company at the expense of the country's interests. This controversy highlights the ongoing challenges in balancing foreign investment with national resource management. The outcome of this dispute could set a precedent for future mineral agreements in Ghana and influence how other countries negotiate similar deals.
What's Next?
The Ghanaian government plans to review its mining laws and policies to provide clarity on royalty arrangements for all minerals. Minister Emmanuel Armah-Kofi Buah has confirmed that comprehensive guidelines will be approved by the cabinet to ensure transparency and protect Ghana's natural resource interests. Meanwhile, Atlantic Lithium has laid off over 100 workers due to delays in ratification, with parliamentary approval being the final regulatory hurdle before the project can proceed to a Final Investment Decision expected in the third quarter of 2025. The outcome of this legislative process will be crucial in determining the future of the Ewoyaa Lithium Project and its impact on the local economy.
