The recent withdrawal of a lithium mining agreement from Parliament has reignited debate over the country’s mineral royalty policies, following objections from the Majority caucus.
The Majority argued that the 10 percent royalty rate negotiated by the Akufo-Addo administration contravened the Minerals and Mining (Amendment) Act, 2010, which caps royalties for such concessions at 5 percent.
The former Speaker of Parliament Prof. Mike Oquaye emphasized that the controversy should extend beyond the debate over whether the royalty rate is set at 10 or 5 percent. He argued that Ghana has long disadvantaged itself by accepting a maximum royalty cap of 5 percent for valuable resources like lithium, gold, diamonds, and bauxite.
“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,” Prof. Oquaye asserted, adding that Ghana should negotiate for significantly higher royalties, suggesting rates of at least 20 percent, to ensure fair returns from its mineral wealth.
The lithium agreement, initially presented to Parliament by Minister for Lands and Natural Resources Emmanuel Armah-Kofi Buah, concerns the mining of lithium and other minerals in Mankessim, Central Region. The agreement was later revised after Barari DV Ghana Limited, the mining firm involved, requested changes to the lease terms in light of a sharp downturn in global lithium prices, which affected the project’s commercial viability.
Prof. Oquaye’s comments have sparked renewed calls for Ghana to re-examine its approach to negotiating mining royalties, with many stakeholders insisting that the nation’s interests must be better protected in future agreements.
Source: Apexnewsgh.com
