The government has retracted the updated lithium mining agreement from Parliament to facilitate additional consultations with essential stakeholders.
During a statement in Parliament on Wednesday, December 10, Deputy Minister of Lands and Natural Resources, Yusif Sulemana, clarified, “The rationale behind the withdrawal of this agreement is to permit the Ministry of Lands and Natural Resources to conduct further discussions with pertinent stakeholders before presenting it to this significant house.”
The agreement, which was initially introduced to Parliament by Lands and Natural Resources Minister Emmanuel Armah-Kofi Buah, pertains to the extraction of lithium and other minerals at Mankessim in the Central Region.
This deal was modified following a request from Barari DV Ghana Limited, which sought to revise the lease terms due to a significant decline in global lithium prices, impacting the project’s feasibility.
Minister Buah had previously indicated that global lithium prices had plummeted from approximately $3,000 per tonne to about $630 per tonne, rendering most lithium projects globally unprofitable.
The government had also renegotiated the royalty terms, reducing the initial rate from 10 percent to 5 percent, with the plan to revert to 10 percent once prices recover.
The agreement has encountered opposition from the Minority in Parliament. Former Lands Minister and MP for Damongo, Samuel Abu Jinapor, contended that the revised agreement is essentially the same as the prior one presented to Parliament, advocating for its rejection.
Minority Leader Alexander Afenyo-Markin also condemned the government, accusing it of inconsistency regarding the lithium deal.
In spite of the criticisms, Majority Leader Mahama Ayariga defended the agreement, urging Parliament to permit the relevant committees to evaluate it and provide recommendations prior to final approval. Speaker Alban Bagbin remarked that the issue would be sent to the appropriate parliamentary committee for further examination.
The withdrawal is intended to guarantee that all issues are resolved and that the project advances in a way that safeguards the interests of local communities and the nation, while simultaneously generating employment and fostering industrial growth in the area.
