BY Daniel Bampoe
The National Democratic Congress government’s renewed push to secure parliamentary approval for the lithium mining lease with Barari DV Ghana Limited has triggered a fresh storm of controversy, as political divisions deepen and experts warn that the deal is no longer economically viable under current global conditions.
The agreement, which seeks to pave the way for the exploitation of lithium at Ewoyaa in the Central Region, is now at the centre of a heated national debate over transparency, value for money, and the readiness to enter the global critical minerals market.
On Monday, Minister of Lands and Natural Resources, Emmanuel Armah-Kofi Buah, laid the lithium mining lease agreement before Parliament.
The Speaker, Alban Bagbin, subsequently referred it to the Lands and Forestry Committee for further scrutiny.
The agreement authorizes Barari DV Ghana Limited—a subsidiary of Australia’s Atlantic Lithium—to mine lithium and related rare earth minerals from the 36.8-million-tonne Ewoyaa deposit. But this submission comes after two turbulent years of stalled approvals, public agitation, and demands for transparency.
Buah explained that the lease had initially been presented to the Eighth Parliament for ratification but was not concluded before adjournment.
During that period, he said, lithium prices were at historic highs, creating favourable terms for government, including an unprecedented 10% royalty rate.
However, he noted that the global market has since shifted dramatically, emphasising:
“Between the period the agreement was earlier drafted and now, the price of lithium has considerably reduced, putting the project at risk going forward.”
Minority Pushes Back: “The Same Deal Repackaged”
The Minority Caucus immediately opposed the laying of the new agreement, insisting that the document mirrors the earlier version that never gained parliamentary approval.
According to them, the government has made no meaningful changes to address the structural concerns raised in 2023.
Former Lands Minister, Samuel Abu Jinapor, argued that during his tenure he presented a similar explanatory statement, but Parliament refused to lay the agreement, rejecting it outright.
“We could not lay it, and it was not referred to any committee,” he recalled, urging the Speaker to reject what he described as a recycled deal.
Speaker Bagbin, however, clarified that the agreement was never officially rejected, emphasizing that Parliament must now subject it to proper scrutiny rather than dismiss it based on previous controversies.
“We are putting a process in place to critically examine it and make sure the right thing is done,” he said.
Key Revisions Triggered By Global Market Collaps
Barari DV Ghana Limited requested a reassessment of the fiscal terms following the drastic plunge in global lithium prices since late 2022.
Lithium carbonate, once priced between US$70,000 and US$80,000 per tonne at peak, has fallen by nearly 80 percent—an unprecedented decline that threatens the project’s profitability.
To accommodate this, the government introduced three major amendments to the original lease:
Adjustment to the 10% royalty rate
Deferral of VAT on capital inputs to reduce initial financial pressure
A new feasibility study for a transshipment facility to cut export costs
Buah insisted these changes were necessary to keep the project viable and attract continued investor commitment.
Expert Raises Alarm
Adding to the growing pushback, former PIAC Chairman and extractive governance specialist, Steve Manteaw, warned that the Ewoyaa Project is no longer economically viable in its current form.
Speaking on JoyNews’ The Pulse, Dr. Manteaw stressed that Ghana risks entering the lithium market on unfavourable terms if the fiscal framework is not urgently revised.
“The global lithium prices at the time we negotiated this lease are not what they are today. There has been a substantial price collapse, throwing into question the viability of the project.”
He cautioned that without reworking Ghana’s revenue expectations, both the investor and the state could face severe financial risks.
Dr. Manteaw further noted that the government has already invested significant political and financial capital—reportedly around US$70 million—into the project. This makes securing a sustainable, forward-looking agreement even more crucial.
A Politicized Battle Over Ghana’s First Lithium Venture
The lithium deal has been politically charged since 2023, when it was first announced as a landmark opportunity to position Ghana in the global electric vehicle battery supply chain.
The agreement offered the state a combined 19 percent equity stake—13 percent free carried interest and 6 percent through MIIF—along with additional commitments to local participation and value addition.
But critics argue that the government negotiated under outdated assumptions, failing to anticipate the volatility of global mineral markets.
