Parliament approves lithium mining lease agreement

Parliament has approved the Mining Lease Agreement between the Ministry of Lands and Natural Resources, and Barari DV Ghana Limited, for the mining of lithium and other minerals at Ewoyaa in the Mfantsiman Municipality of the Central Region. 

The agreement, covering a concession area of 42.63 square kilometres, was presented to the House by Mr Emmanuel Armah-Kofi Buah, the Minister for Lands and Natural Resources, pursuant to Article 268 of the 1992 Constitution and Section 5(4) of the Minerals and Mining Act, 2006 (Act 703). 

Following its presentation, the Speaker referred the agreement to the Committee on Lands and Natural Resources for consideration and report. 

The Committee engaged Mr Yusif Sulemana, the Deputy Minister of Lands and Natural Resources, officials from the Minerals Commission, the Environmental Protection Authority (EPA), and received input from the Minerals Income Investment Fund (MIF). 

The Committee noted that most of the concerns raised earlier had been addressed in the agreement. 

However, it acknowledged suggestions that Ghana should adopt a state-owned approach to lithium development rather than relying on foreign concessions under royalty-based arrangements. 

The Committee described this as a potential paradigm shift in mineral exploitation policy and drew the Ministry’s attention to the proposal for future reforms. 

Despite the Committee’s recommendation for approval of the agreement, the Minority Caucus, led by Mr Alexander Afenyo-Markin, the Minority Leader, rejected the motion for adoption of the report. 

Lithium, a critical mineral for producing batteries, glass, and aluminium products, has become central to the global green transition. 

Demand for lithium is projected to rise exponentially, driven by the shift to electric vehicles and renewable energy storage. 

Analysts estimate that by 2030, global demand could surpass 2.4 million metric tonnes of lithium carbonate equivalent, with the lithium-ion battery market expected to exceed $400 billion in value. 

The approval of the Ewoyaa concession marks Ghana’s entry into the global lithium market, positioning the country to benefit from the growing demand for green minerals while raising important questions about ownership, policy direction, and long-term economic impact. 

Source: GNA