IEA calls for suspension of Lithium ratification over low state benefits

The Institute of Economic Affairs (IEA) is urging the government to halt the ratification of Ghana's lithium mining agreement currently before Parliament.

According to the Institute, the deal does not provide sufficient value to the state.

The call follows the Majority’s claim that the 10% royalty rate secured by the previous government with Barari DV Ghana Limited breaches the Minerals and Mining (Amendment) Act, 2010, which stipulates a 5% royalty for such concessions.

Speaking at a press briefing on December 9, 2025, the Board Chairman of the IEA, Dr Charles Mensah, noted that the persistent imbalance within the agreement has contributed to Ghana’s recurring dependence on external creditors such as the International Monetary Fund (IMF).

10% royalty in Ghana's lithium deal was unlawful - Majority

"Parliament must halt ratification of the Revised Lithium Agreement between Ghana and Barari, currently before Parliament. This is critical because the agreement in its current form is not only a continuation of the colonial-type agreements Ghana has had in its gold and oil sectors, but it also fails to comply with the requirements of major international frameworks signed and ratified by Ghana," he said.

He added that the IEA is seeking a review of the lithium agreement to ensure a greater stake for the government and to strengthen local ownership.

"The United Nations General Assembly Resolution 1803 (1962), United Nations General Assembly Resolution 3281 (1974), and the African Charter on Human and Peoples’ Rights, along with other protocols, all enjoin resource-endowed countries to exploit their resources for their own benefit," he noted.

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