Alhaji Collins Dauda
Majority Members of Parliament (MPs) on the Lands and Natural Resources Committee say broad public sentiment strongly supports a 10% royalty rate for the country’s lithium resources, but insist Parliament cannot impose such a rate until the Minerals and Mining Act is amended to make it lawful.
Addressing the parliamentary press corps yesterday, Alhaji Collins Dauda, MP for Asutifi South and spokesperson for the Majority group on the Committee, provided a detailed explanation of the legal constraints that stalled the previous lithium agreement laid before Parliament in 2024 and continue to shape deliberations on the latest agreement submitted by the current Minister for Lands and Natural Resources.
Why the 2024 Agreement Stalled
Mr. Dauda recalled that on July 16, 2024, former Lands and Natural Resources Minister, Samuel Abu Jinapor, laid a lithium mining agreement between the government and Barari DV Ghana Limited before Parliament for ratification as required under Article 268 of the 1992 Constitution.
The agreement was referred to the Committee on Lands and Natural Resources, which subsequently engaged the ministry, the Minerals Commission, traditional authorities from the affected area, and other stakeholders.
According to him, during the review process, the Committee encountered two key issues – one legal and one related to fairness in the mining sector.
Mr. Dauda said central to the legal challenge was the 10% royalty rate contained in the agreement, explaining that the rate clashed with the existing statutory framework under Section 25 of the Minerals and Mining Act, 2006 (Act 703), which originally fixed royalties within a narrow band of 3–6%.
He said that provision was later replaced by the Minerals and Mining (Amendment) Act, 2010 (Act 794), which set a flat 5% royalty rate for all mining leaseholders.
“Given that the law clearly prescribes a 5% royalty, it was impossible for the Committee to endorse a 10% rate contained in the agreement,” Mr. Dauda stated and added, “We could not recommend to the House an agreement that contradicted the very law from which it derived its authority.”
No Rejection Took Place
The Asutifi South MP dismissed claims that the then Minority (NDC MPs) rejected the lithium agreement in 2024. He stressed that no report was ever submitted to plenary because the Committee could not lawfully recommend ratification in its existing form.
“We advised the Minister to take steps to amend the law to allow Ghana to legally demand higher royalties. Since this was not done, the Committee could not bring a report for debate. So suggestions that the agreement was rejected are inaccurate and misleading,” he submitted.
Fairness in the Mining Sector
Alhaji Dauda said beyond legality, the Committee also identified a fairness issue, saying if Barari DV Ghana Limited alone were made to pay 10% while multinational operators such as Newmont, Gold Fields, and AngloGold Ashanti continued to pay 5%, the Committee argued that such disparity would amount to discrimination and distort the mining market.
“Only Barari would have been paying 10%. All others would still be paying 5%. That is not fair, and it is not equitable,” Mr. Dauda explained
The New Agreement
Under the new administration, Lands Minister Armah-Kofi Buah has resubmitted an agreement with Barari DV Ghana Limited.
Mr. Dauda said this version avoids specifying any royalty rate and instead states that royalties will be paid “as prescribed by law”, which currently means a statutory 5%.
According to him, while this aligns the agreement with existing law, it does not address the widespread national preference for a higher royalty rate.
“Many Ghanaians favour a 10% royalty. But unless Act 794 is amended, Parliament cannot impose 10% or any higher figure. The law must change first,” Mr. Dauda noted.
He added that although 10% appears to be the popular figure across the country and among interest groups, only the Minister has the mandate to propose a revised royalty rate through an amendment bill.
Amendment Before Ratification
The Majority MPs said they want the amendment bill presented immediately, allowing the Committee to consider it in tandem with the mining agreement.
“It is our wish that the Minister brings the amendment so the two can be considered simultaneously. Before ratification, the law must already be in place to avoid a legal vacuum,” Mr. Dauda said.
He stressed that amending the law would not only secure higher revenue from lithium but ensure that all mining companies, not only Barari, pay the same enhanced rate, thereby guaranteeing equity across the sector.
Public Consultation Underway
The Committee has advertised the agreement for public memoranda, welcoming submissions from 13–27 November 2025. Civil society groups, NGOs, experts, and interested individuals are invited to present their positions.
Mr. Dauda assured Ghanaians that the Committee will not rush its work.
“We will not ratify the agreement until extensive engagement has been done,” he said. “We want a comprehensive national conversation and will take every view into account.”
By Ernest Kofi Adu, Parliament House