In order to facilitate more discussions with important stakeholders, the government has withdrawn the updated lithium mining agreement from Parliament.
“The reason for the withdrawal of this agreement is to enable the Ministry of Lands and Natural Resources to undertake further consultations with very relevant stakeholders prior to representing it to this very important house,” Deputy Lands and Natural Resources Minister Yusif Sulemana said in response to the decision made in Parliament on Wednesday, December 10.
The extraction of lithium and other minerals in Mankessim in the Central Region is covered under the agreement, which was first submitted to Parliament by Lands and Natural Resources Minister Emmanuel Armah-Kofi Buah.
Due to a significant decline in the price of lithium globally, which has impacted the project’s viability, the business, Barari DV Ghana Limited, requested that the terms of the lease be changed.
Minister Buah had previously noted that global lithium prices had fallen from about $3,000 per tonne to around $630 per tonne, making most lithium projects worldwide unprofitable.
The government had also renegotiated royalty terms, lowering the starting rate from 10 percent to 5 percent with the intention of returning to 10 percent when prices recover.
The Parliamentary Minority has criticised the agreement. Samuel Abu Jinapor, a former Lands Minister and Damongo MP, stated that the updated agreement is identical to the one that was previously given to Parliament and urged that it be rejected.
The administration was also slammed by Minority Leader Alexander Afenyo-Markin, who accused it of being inconsistent regarding the lithium transaction.
Majority Leader Mahama Ayariga defended the deal in spite of the objections, pleading with Parliament to let the pertinent committees examine it and offer suggestions before to final approval. The issue will be referred to the relevant parliamentary committee for additional examination, according to Speaker Alban Bagbin.
The withdrawal seeks to guarantee that all issues are resolved and that the project moves forward in a way that safeguards the interests of the country and local communities while simultaneously generating employment and promoting industrial growth in the area.