The government has pulled back the renegotiated lithium agreement with Barari DV Ghana Limited to allow for broader national consultations amid mounting public criticism.
The revised deal, featuring a proposed 5% royalty rate, sparked backlash from civil society organisations and policy analysts who argued that the original agreement, which offered 10% in royalties, was more favourable to Ghana.
Announcing the withdrawal in Parliament on Wednesday, Deputy Minister of Lands and Natural Resources Alhaji Yusif Sulemana said the decision is necessary to enable the Ministry to engage extensively with all relevant stakeholders before resubmitting the agreement.
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“Mr Speaker, the lithium agreement was laid before this House on Tuesday, November 11, 2025, and referred to the Committee on Lands and Natural Resources. The withdrawal is to allow for further consultations before its re-presentation to this august House,” the Deputy Minister told lawmakers.
Majority Leader Mahama Ayariga explained that the proposed reduction in royalties was driven by the significant drop in global lithium prices, which he said had weakened investor interest in Ghana’s emerging lithium industry.
According to him, the government is considering a broader proposal to overhaul Ghana’s royalty regime across all mineral resources. He noted that despite rising global gold prices, Ghana continues to receive comparatively low royalties.
“The proposal is to restructure our entire royalty system to peg rates to world market prices. For example, if gold royalties are five per cent at 30 dollars, when the price rises to 200 dollars, royalties must rise accordingly,” Ayariga said.
Minority Chief Whip Frank Annoh-Dompreh welcomed the government’s decision to withdraw the renegotiated lithium agreement from Parliament, describing it as an important step toward correcting a slippery path the country was being led onto.
The move, he said, signalled that the Majority had finally accepted public concerns about the deal, stating, “Our colleagues are eating humble pie, and there is no shame in it.”
Annoh-Dompreh, who emphasised his background in environmental advocacy, urged the government to use the withdrawal as an opportunity to design a robust strategic framework for Ghana’s lithium sector. He referred to global trends in mineral exploitation and Indonesia’s strong position in lithium processing.
He stressed that Ghana must avoid becoming merely an exporter of raw minerals. With lithium now central to renewable energy technologies—including solar panels and battery systems—he said the country must prioritise value addition.
The withdrawal is expected to open the door for renewed dialogue among government officials, mining firms, experts, and civil society groups to ensure that Ghana maximises value from its mineral wealth—particularly emerging resources like lithium.