The Majority Caucus on the Lands and Natural Resources Committee has underscored the importance of public participation in Ghana’s lithium mining negotiations, stressing that the country must adopt a transparent and legally sound approach to benefit fully from its mineral wealth.

Committee Chairman Alhaji Collins Dauda briefed the media on the status of the agreement currently before Parliament, outlining key differences between the lithium deal submitted in 2024 and the one now under consideration.

According to Dauda, the former Minister for Lands and Natural Resources, Mr Abu Jinapor, presented an agreement in July 2024 between Ghana and Barari DV Ghana Limited for parliamentary approval.

That agreement followed stakeholder consultations involving traditional authorities and relevant state agencies.

However, during parliamentary review, two major issues emerged: a dispute over the proposed royalty rate and questions of fairness in the market.

The deal recommended a 10% royalty for lithium, even though Ghana’s Minerals and Mining Act of 2006 sets royalties between 3% and 6%.

The law was later amended in 2010 to establish a flat rate of 5%, creating a legal contradiction with the proposed 10%.

Dauda explained that the committee advised the government at the time to amend the law to accommodate the higher royalty rate, but the amendment was never made.

This inconsistency rendered the agreement non-compliant with existing legislation, preventing the committee from recommending its ratification.

He further revealed that the new agreement submitted by the current administration states that royalties will be paid in accordance with existing law—currently 5%.

Dauda stressed that if Ghana intends to increase the rate, the Minerals and Mining Act must first be amended.

To this end, the committee has launched a public consultation process, publishing notices in newspapers and engaging stakeholders to solicit views on the best path forward.

Dauda assured that the committee will not ratify any agreement until all necessary legal amendments are completed and the voices of Ghanaians are fully considered, adding that the ultimate goal is to ensure a fair and beneficial outcome for the country.