By Godwill Arthur-Mensah / Elsie Appiah-Osei
Accra, Dec. 19, GNA – Mr Emmanuel Armah-Kofi Buah, Minister of Lands and Natural Resources, has announced that the new legislative instrument, Minerals and Mining Royalty Regulation, 2025, introduces an automatic sliding scale royalty system of up to 12 per cent for lithium exploration in Ghana.
Addressing the Parliamentary Press Corps in Accra on Friday, Mr Buah explained that although the agreement between the State and Barari DV Limited sets a five per cent base royalty rate, the sliding scale ensures upward adjustments tied to global market prices of the commodity.
He said the royalty would increase to 10 per cent if lithium prices reached $2,000 per tonne, and further rise to 12 per cent if prices hit $3,000 per tonne.
“The sliding scale royalty ensures certainty for both the State and investors,” the Minister stated, adding that the agreement also incorporates a one per cent Community Development Fund from gross revenues of lithium to support infrastructure projects such as roads, hospitals, and other social amenities in the Mfantseman enclave in the Central Region.
Meanwhile, Mr Kwaku Ampratwum-Sarpong, New Patriotic Party Member of Parliament for Mampong and Ranking Member of the Lands and Natural Resources Committee of Parliament, has expressed concern over the agreement.
He argued that pegging the base royalty rate at five per cent was not in the nation’s best interest, noting that previous lithium agreements had been set at 10 per cent.
He therefore called for corrective action to safeguard Ghana’s national interest.
On mining governance, the Minority Caucus reiterated that illegal mining continues to pose an existential threat to Ghana’s environment, agriculture, water security, and public health.
Mr Ampratwum-Sarpong warned that cocoa farms are being destroyed and rivers and lakes contaminated by the scourge of illegal mining and called for decisive action by the government to end the menace.
GNA
Edited by Lydia Kukua Asamoah