The Lands and Natural Resources committee in Parliament has called for an amendment of the law on mining royalties to adjust the lithium agreement royalty from five percent to a better rates, likely 10 percent or more.
Addressing the press in Parliament on Tuesday, November 25, 2025, the chairperson, Collins Dauda noted that the current law which is the Minerals and Mining (Amendment) Act 2010 (Act 794) sets the royalty rate at 5%, which is what is contained in the new deal laid by the Minister.
Under current law, Ghana can charge only a 5% royalty on mining companies’ interests. This caused the Lands Ministry to renegotiate the previously announced 10% rate, which critics argued had no legal backing.
He says an attempt to get the amendment done by the previous minister was unsuccessful, rejecting claims by the current Minority that the agreement was rejected in the past parliament.
“So, the report was never presented to Parliament. Anybody who says that the Minority rejected is misleading the House. It is inaccurate. The report was not resented to the House for the House to debate and ratify. That is what it is,” he stated.
He noted that the Lands Minister, Emmanuel Armah-Kofi Buah has presented an agreement between the government of Ghana and Barari DV Ghana Limited on lithium.
“In that agreement, government did not specify any percentage but said that royalty be paid as described by law. What it means is that what is prescribed by law at the moment is 5%.
“Revenues generated from a 5% loyalty and a 10% royalty can never be the same. The preference is to have 10% or more. But the same condition that was raised in the previous regime arises. The law has to be amended.
The Asutifi South legislator explained that the Minerals and Mining (Amendment) Act 2010 (Act 794) which pegs the royalty rate at 5% has to be amended.
He noted that the Minister has the sole authority to increase the Lithum royalty from 5% to 10% subject to Parliamentary approval.
“So, what it means is that this law which is the current royalty. Minerals and Mining Amendment Act 2010 (Act 794) has to be amended to up the rate from 5% to whatever percentage the Minister so wishes.
“Certainly, the amendment will end up in Parliament for Parliament to consider and pass. I can see talking to many people and also in Parliament that the preferred number is 10 but we don’t have the capacity to say it is 10%, 11% that lies with the Minister,” he added.
He contends that a new amendment should direct that other mining companies pay similar or the same royalty as would be paid by Barari DV Ghana Limited.
The Committee has advertised in newspapers soliciting opinion from the public and CSOs on the new Lithium agreement.
Chair of the Committee, Collins Dauda assured that public opinion on the agreement will be considered before any approval.
“I am aware and I have read several views and positions on the Lithium agreement before us. I wish to state that the Committee is not in a hurry to pass the agreement without taking the views of the public on it.
“So we cause and advert by publication to be made in the newspapers from November 13- 27 and it is our hope that CSOs and people who are knowledgeable in this field will send their memoranda to the Committee,” he stated.
