The Majority in Parliament, led by the Chairman of the Lands and Natural Resources Committee, Collins Dauda, has stated that the 10 per cent royalty agreement signed by the Akufo-Addo administration with Barari DV Ghana Limited for lithium mining was inconsistent with Ghana’s existing legal framework.
As such, the current Parliament is working to amend relevant legislation to align national mining laws with the latest agreement and ensure full legal compliance.
According to him, the Minerals and Mining (Amendment) Act, 2010, sets a fixed royalty rate of 5 per cent for mining companies—making the 10 per cent provision in the earlier agreement unlawful.
This discrepancy raises concerns about the legal enforceability of the agreement and the potential for fiscal leakage, where the government could be receiving less revenue than legally mandated, thereby affecting the country’s fiscal sustainability and revenue collection from mineral resources.
Mr. Dauda emphasised that Parliament’s responsibility is to ensure that mining agreements are grounded in law and that policy reforms guarantee clarity, consistency, and proper oversight.
This position follows the presentation of a revised lithium mining agreement by the Minister for Lands and Natural Resources, which now includes the legally required 5 per cent royalty rate. The revision has drawn strong opposition from the Minority, who argue that the new terms are less beneficial to the state.
“The government is taking steps to review the laws. And importantly, to review the policy relating to mining in the country. As gatekeepers, we make the laws, and we expect the laws to be implemented.
“We expect the laws to be obeyed. We cannot make laws expecting implementation and obedience, and, at the same time, do something that runs against the law,” he said.
the legal violation regarding the royalty rate not only poses legal and administrative challenges but also has broader economic implications for revenue generation, investment climate, and sustainable resource management in Ghana’s mining sector.
