Minister for Lands and Natural Resources, Emmanuel Armah Kofi Buah, has justified the relaid lithium agreement currently before Parliament, insisting the revised terms offer Ghana stronger value, greater certainty for investors, and direct benefits for host communities.
The Minister acknowledged earlier concerns about the deal and explained that the government withdrew the initial arrangement to strengthen it after broad consultations with stakeholders in communities such as Mankessim and abroad.
“It is clear that we had a challenge, and this is what good leadership is about. We listened, we engaged, and I made the decision that we needed to withdraw the earlier arrangement so we could strengthen it,” he said.
Addressing the media in Parliament on Friday, the Minister announced a new sliding royalty framework designed to allow Ghana to maximize revenue when global lithium prices surge while cushioning investors during downturns.
According to him, the previous legal framework left the country fixed at a 5% royalty regime, limiting the state’s ability to benefit from favorable market conditions.
“Without a framework, if the existing regulation says 5%, you must stay there. Today, I am proud to say that we have developed a regulation that gives us a sliding scale. When prices go up, the state captures greater benefit. When they fall, investors also gain relief. This provides certainty and fairness,” he explained.
He disclosed that under the new structure, higher lithium prices could push royalties to 12%, significantly improving national gains.
The Minister also announced a landmark provision—a dedicated 1% Community Development Fund from gross revenue to support host communities.
“For the first time, we are introducing a one percent community development fund. This will mean roads, hospitals, schools, and real transformation independent of central government,” he emphasized.
He described the revised agreement as one of Ghana’s strongest yet, saying it reflects lessons from the past and delivers sustainable value for citizens.
Mr. Buah assured Parliament and the public that the renegotiated deal embodies transparency, economic prudence, and fairness.
“Today, I am very excited that as a listening government, we are back in Parliament with an enhanced agreement backed by regulation that will provide real benefit to the people of Ghana,” he stressed.
