President of IMANI Africa, Frankline Cudjoe, has raised concerns over the proposed royalty structure in the lithium mining agreement between the Government of Ghana and Barari DV Ghana Limited, arguing that the current arrangement could undermine the country’s ability to derive maximum benefit from its lithium resources.
His comments follow the decision by the government to reintroduce the lithium mining agreement to Parliament after it was earlier withdrawn to allow for further stakeholder consultations.
The resubmission has reignited debate over the proposed royalty rate of five per cent, which critics say represents a reduction from the 10 per cent rate negotiated under the previous administration.
They argue that the lower rate could significantly limit Ghana’s returns from the exploitation of its lithium deposits.
In a Facebook post shared on Sunday, December 21, 2025, Mr Cudjoe said that despite the introduction of a sliding scale for royalty calculations, the starting royalty rate remained at five per cent, not seven per cent as earlier suggested.
He explained that under the current structure, the royalty rate would remain at five per cent until lithium prices exceed the minister’s benchmark price of 1,500 dollars per tonne.
He noted that the current market price of lithium stood at about 1,200 dollars per tonne, while the investor’s production cost was estimated at 610 dollars per tonne, translating into a profit margin of nearly 45 per cent.
Mr Cudjoe contrasted this with the 2024 negotiations, stating that the same investor was willing to sign an agreement when profit margins were below 20 per cent, based on an average price of 800 dollars per tonne and the same production cost, under a royalty rate of 10 per cent.
He also questioned figures presented by the sector minister in a recent interview, describing as inaccurate the basis for a five per cent starting royalty rate tied to a lithium price of 3,000 dollars per tonne as of 2024.
“The Minister’s figures, which he presented in an interview he granted for the basis of a start-off royalty of 5% at $3000 per tonne as of 2024, are inaccurate,” he stated.
Mr Cudjoe said, given President John Dramani Mahama’s public engagement and interest in the lithium discussion, the minister must ensure that all decisions related to the agreement were transparent, consultative, and data-driven, in line with the President’s stated direction.
“Given President John Dramani Mahama’s serious regard for the Lithium conversation by publicly engaging on the subject, we would urge the Minister to ensure that all decisions related to this matter are transparent, consultative, and data-driven as the President has clearly directed,” he added.
Gov’t resubmits Lithium mining agreement to Parliament