Majority MPs flag legal concerns over 10% Lithium royalty, push for amendment of mining law

The Majority side of Parliament’s Lands and Natural Resources Committee is calling for amendments to the Minerals and Mining Act (Act 703) to enable the government to increase the proposed royalty rate for the Ewoyaa lithium project.

Under current law, Ghana can charge only a 5% royalty on mining companies’ interests. This limitation forced the Lands Ministry to renegotiate the previously announced 10% rate, which critics argued had no legal backing.

Addressing journalists on Tuesday, November 25, Committee Chairman Collins Dauda explained that the earlier 10% arrangement was rejected because it contravened existing legislation.

According to the Committee, the Minerals and Mining (Amendment) Act, 2010, explicitly sets a fixed royalty rate of 5%, making the 10% provision in the original agreement between the Akufo-Addo administration and Barari DV Ghana Limited unlawful.

The Lands Minister has since presented a revised agreement reflecting the legally mandated 5% royalty. However, the revision has sparked fresh resistance from the Minority, who argue the new terms are now less favourable to the state.

Mr. Dauda said Parliament is working to harmonise the legal framework with the new agreement, stressing that compliance with the law remains paramount.

“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,” he stated.
“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.”

Below is the press engagement on their demand;