The Government of Ghana has submitted a revised Mining Lease Agreement with Barari DV Ghana Limited to Parliament for ratification, marking a key step in advancing the country’s first major lithium mining project at Mankessim in the Central Region.
Laying the agreement before the House, the Minister for Lands and Natural Resources, Hon. Emmanuel Armah-Kofi Buah, explained that the agreement had previously been laid before, but was not ratified.
“Mr. Speaker, as you know, the lease was presented indeed in the eighth parliament for ratification pursuant to Article 268 (1) of the 1992 Constitution and Section 54 of Act 703, but was not ratified before the House adjourned.”
Hon. Emmanuel Armah-Kofi Buah, Minister for Lands and Natural Resources
According to the Minister, the revised lease reflects significant changes in the global lithium market and adjustments made to ensure the project remains viable while safeguarding Ghana’s national interest.
Falling Lithium Prices Prompt Review of Terms
Hon. Buah revealed that the original terms of the lease, negotiated when global lithium prices were at their peak, had to be reassessed in light of current market realities.
“The basis of the agreement, especially the price of lithium at the time of negotiation, which was about US$3,000 per tonne has changed.
“The current price is about US$630, making the project really at risk going forward.”
Hon. Emmanuel Armah-Kofi Buah, Minister for Lands and Natural Resources
He added that the company, Barari DV Ghana Limited, had appealed to the government to revisit key provisions of the agreement in order to ensure the project’s sustainability under the new pricing conditions.
The Minister explained that while Ghana had initially taken advantage of high lithium prices to negotiate favorable fiscal terms including doubling the standard mining royalty rate from 5% to 10% the drastic fall in prices required a reassessment of some clauses to maintain investor confidence and project feasibility.
Major Adjustments in the New Lease
With the sharp fall in prices, the company requested that three major areas of the lease be reconsidered.
“Based on their request, three key areas were looked at—the royalty rate adjustment, VAT deferral on capital inputs, and the Saltpond trans-shipment facility feasibility.
“These three areas, which were new, have been factored into the revised lease.”
Hon. Emmanuel Armah-Kofi Buah, Minister for Lands and Natural Resources
He confirmed that the revised document had undergone review by the Cabinet and received approval before being laid before Parliament.
The revised terms are expected to strike a balance between ensuring fair value for Ghana and maintaining a competitive environment for investors amid volatile global lithium prices.
The revised Ewoyaa Lithium project agreement marks a critical juncture in Ghana’s effort to harness its green mineral resources for national development.
The Mankessim deposit, considered one of the most promising lithium finds in West Africa, is expected to play a key role in the global electric vehicle (EV) and battery supply chain.
Lithium, often called “white gold,” is a key component in rechargeable batteries that power electric vehicles, smartphones, and renewable energy storage systems.
For Ghana, the project presents an opportunity to diversify its mining portfolio beyond gold, bauxite, and manganese, while also advancing its climate and energy transition goals.
Parliament Refers Agreement to Committee for Review
Following the presentation, the Speaker of Parliament, Rt. Hon. Alban Sumana Kingsford Bagbin, formally referred the lease to the appropriate committee.
“Hon. Members, I accordingly refer the mining lease agreement, which is referred to as new, to the Committee on Lands and Natural Resources for consideration and report to the House.”
Hon. Emmanuel Armah-Kofi Buah, Minister for Lands and Natural Resources
The referral sets in motion the next stage of legislative scrutiny, during which the committee will review the details of the agreement, engage stakeholders, and make recommendations for ratification.
Parliament’s deliberation on the new lease is expected to shape how Ghana approaches similar strategic mineral agreements in the future, particularly as global demand for critical minerals continues to fluctuate.
As Ghana’s lithium ambitions take shape, the outcome of Parliament’s deliberations on the Barari DV lease will be a defining moment for the country’s efforts to align resource development with global energy transition goals.
For now, the focus remains on ensuring that the agreement not only reflects current market realities but also secures Ghana’s long-term strategic interests in the fast-evolving global battery minerals industry.
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