Chairman of Parliament’s Lands and Natural Resources Committee, Hon. Collins Dauda, has provided detailed clarification on the status of the Barari Lithium Agreement, firmly dismissing claims that the then Minority rejected the deal as misleading and inaccurate.
Addressing journalists on Tuesday at a press conference, he explained that the New Patriotic Party (NPP) Majority in the previous Parliament failed to submit the Committee’s report to the plenary, even after the then Minister for Lands and Natural Resources, Samuel Abu Jinapor, laid the agreement and it was duly referred to the Committee.
According to him, Committee members encountered significant challenges with the agreement in 2024 because the proposed 10% royalty rate directly contradicted Ghana’s mining laws, which set a flat royalty rate of 5%.
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“The agreement derived its authority from Act 703, yet it proposed a 10% royalty rate, which the law does not permit. It was extremely difficult for us to recommend an agreement that violated the very law Parliament enacted,” Hon. Dauda noted.
He referenced the Minerals and Mining Act, 2006 (Act 703) and its amendment, Act 794, which both stipulate a 5% royalty rate. While the Committee preferred the higher 10% rate to increase revenue for Ghana, it could not legally endorse a provision that violated an Act of Parliament.
“We advised the Minister to amend the law so Ghana could benefit more. That didn’t happen, and no report was presented to the House,” he added.
Hon. Dauda also highlighted concerns about fairness in the mining sector, pointing out that the 10% royalty rate applied solely to Barari, while major multinational mining firms like Newmont and AngloGold continued paying 5%.
“We felt it was unfair and discriminatory. You cannot have one company paying 10% while others pay 5%. Equity must guide our decisions,” he stressed.
He explained that the new agreement presented by the current Minister for Lands and Natural Resources, Hon. Emmanuel Armah-Kofi Buah, no longer specifies any royalty percentage. Instead, it mandates that royalties be paid strictly as prescribed by law — meaning the default 5% remains in effect unless the law is amended.
“The preference is 10% or more, but the law must be amended. Only the Minister can propose the new rate, and Parliament will approve it,” Hon. Dauda said.
The Committee has since advertised the agreement and opened a window for public submissions from Civil Society Organizations (CSOs), NGOs, industry experts and interested citizens from 13th to 27th November.
Hon. Dauda assured that the Committee will not rush its work and will not ratify the agreement without comprehensive engagement with all critical stakeholders.
He emphasized that the overarching goal is to maximize national benefits from lithium mining while ensuring transparency and securing a stronger fiscal regime for Ghana.
Hon. Dauda urged the Minister to present the necessary amendments to Act 703 and Act 794 before the ratification of the agreement to avoid creating a policy gap.
“It is our wish that the amendment and the agreement are taken simultaneously. The law must be in place before ratification so the royalty rate applies fairly across all mining companies,” he said.
He reaffirmed Parliament’s commitment to safeguarding the national interest, stressing that Ghana must derive greater value from its mineral resources and that every required step will be taken to achieve that goal.