Concerns are mounting in Parliament over the Minerals and Mining (Royalty) Regulations, 2025, currently before the Subsidiary Legislation Committee, amid claims that the draft Legislative Instrument (LI) quietly reintroduces a controversial 5% royalty regime for lithium, despite widespread opposition to similar terms in the Barari DV lithium agreement.
The Ranking Member on Parliament’s Lands and Natural Resources Committee, Kwaku Ampratwum-Sarpong, warned that the regulations appear to advance the same royalty structure previously criticised by civil society groups and lawmakers, raising questions about government’s intentions.
Hon. Ampratwum-Sarpong noted it looks like the government is in a ‘Yentia obiaa’ mode, arguing that despite the noise and huge opposition against the juicy 5% royalty offer to Barari DV, and the subsequent withdrawal by the Minister, the new LI in its current format is bent on giving Barari DV the same 5% royalty.
Under the Schedule to the draft LI, lithium attracts a 5% royalty at prices up to US$1,500 per tonne, escalating progressively to 12% when prices exceed US$3,200 per tonne.
This baseline rate, according to the Ranking, is particularly problematic given that current global lithium prices are below US$1,500 per tonne, meaning the Republic would immediately receive only the minimum royalty rate.
“For the consideration of Ghanaians, the current price of lithium is under US$1,500,” the Ranking Member cautioned, suggesting the structure disadvantages the state at a time of depressed commodity prices.
The draft LI, laid under sections 25 and 110(2)(v) of the Minerals and Mining Act, 2006 (Act 703), seeks to replace the Minerals (Royalties) Regulations, 1987 (L.I. 1349) and introduces a variable royalty regime tied to international commodity prices.
While government argues that the framework modernises royalty administration and aligns Ghana with global best practice, Hon. Ampratuwm stressed that the lithium provisions specifically may institutionalise terms previously rejected by Parliament and the public.
The LI empowers the state to: Collect royalties monthly based on gross revenue; take royalties in cash or in kind; and transfer all collections to the Minerals Income Investment Fund (MIIF).
However, the Ranking Member warns that without stronger lithium-specific safeguards, Ghana risks repeating extractive sector mistakes of the past.
Notably, the same regulations introduce a progressive royalty system for gold, with rates rising from 5% to as high as 12% when prices exceed US$4,500 per ounce.
This has fuelled criticism that strategic battery minerals like lithium are being treated more leniently than traditional minerals, despite their importance to Ghana’s industrialisation and green transition agenda.
The draft regulation, signed by the Minister for Lands and Natural Resources, Hon. Emmanuel Armah-Kofi Buah, is expected to mature into law unless annulled by Parliament within the statutory period.
The Ranking Member urged Parliament to subject the LI to deeper scrutiny, warning that legislative instruments must not be used to reintroduce controversial fiscal concessions through the back door.
