Chamber of Mines urges higher state equity

Ghana is seeking to deepen its stake in the fast-growing global lithium market following parliamentary ratification of the Ewoyaa mining lease, with industry players urging the government to secure greater long-term value from the project amid volatile prices for battery minerals.

The Ghana Chamber of Mines said the state can increase its economic returns by leveraging the Minerals Income Investment Fund (MIIF) to raise its equity participation beyond the current 13 percent free carried interest, positioning the country to benefit more meaningfully from rising global demand for lithium used in electric vehicle batteries and energy storage systems.

While commending the government for securing parliamentary approval for the country’s first lithium lease agreement with Barari DV Ghana Limited, a subsidiary of Atlantic Lithium Limited, the Chamber also called for increased investment in geological research and data development.

“Strengthening Ghana’s geoscientific knowledge base will improve investor confidence and support efficient identification, development, and management of the country’s mineral resources,” the Chamber said in a statement.

Parliament has ratified the revised mining lease for lithium extraction at Ewoyaa near Mankessim, granting the company a 15-year term subject to renewal under the Minerals and Mining Act, 2006.

Under the agreement, the government will hold a 13 percent free carried interest in the mineral rights and operations.

The royalty rate will be determined in line with the Minerals and Mining Royalty Regulations, 2025.

The deal also includes provisions for host communities, with one percent of annual revenue allocated to a community development fund.

The ratification comes nearly three years after the lease was initially granted by the Ministry of Lands and Natural Resources in October 2023 but remained pending parliamentary approval until its passage in recent days.

A key feature of the revised agreement is the introduction of a sliding scale fiscal regime, designed to increase the state’s revenue share as global lithium prices rise.

Following its approval, the Chamber described this development as a major step in Ghana’s efforts to harness its critical mineral resources for sustainable growth and industrialisation.

“The Ewoyaa Lithium Project represents a strategic addition to Ghana’s mining portfolio, positioning the country as an emerging player in global energy transition through the supply of critical minerals,” it said.

The Chamber also highlighted collaboration between the government and industry stakeholders in advancing the project in line with national development priorities.

It noted that the project is expected to generate significant employment opportunities, both directly and indirectly, while stimulating economic activity in surrounding communities.

In addition to job creation, it said the development will boost national revenue, support infrastructure expansion, and facilitate skills transfer.

Chief Executive Officer (CEO) of the Chamber, Dr Kenneth Ashigbey, described the ratification as a landmark for the sector.

“Ratification of the Ewoyaa Mining Lease is a landmark achievement that reinforces Ghana’s position as a leading mining jurisdiction in Africa,” he said.

“This project demonstrates how strategic partnerships between the government and industry can unlock value, create jobs, and deliver long-term socio-economic benefits.”

The Chamber reiterated its commitment to supporting policies and partnerships that promote responsible mining, local content development, and sustainable socio-economic transformation.