‘New’ Lithium deal generates Heated debate in Parliament

0
265
Samuel A.Jinapor, MP Damongo Constituency

A heated debate broke out in Parliament on Tuesday, November 11, 2025 as parliamentarians engaged in a tense exchange over a revised mining lease agreement between the Government of Ghana and Barari DV Ghana Limited for the exploitation of lithium and other minerals at Mankessim in the Central Region.

The agreement, which covers an area of 42.63 square kilometres in the Mfantseman District, was laid before Parliament by the Minister for Lands and Natural Resources, Armah Kofi Buah, for ratification under Article 268 of the 1992 Constitution.

Minister Defends Revised Agreement

Presenting the lease to the House, Mr. Armah Kofi Buah explained that the current agreement replaces an earlier one that had not been ratified, before the previous Parliament adjourned. He noted that a review became necessary because of drastic changes in global lithium prices since the initial negotiation.

“At the time of the negotiation, the price of lithium was about $3,000 per tonne. The price has since fallen to about $630. This decline made it difficult for the project to go forward and the company appealed that certain key provisions be revisited,” the Minister stated.

The Minister for Lands and Natural Resources explained that, following the appeal, three main areas were reviewed: the royalty rate adjustment, VAT deferral on capital inputs and provisions regarding trans-shipment facilities.

These adjustments, he said, necessitated the drafting of a new lease, which has since received Cabinet approval and was now before Parliament for ratification.

Speaker Refers Agreement to Committee

Following the minister’s submission, Speaker of Parliament, Alban Sumana Kingsford Bagbin referred the mining lease agreement to the Committee on Lands and Forestry for consideration and report, after the laying of the document.

“Honourable members, I accordingly refer the mining lease agreements, which is referred to as new, to the Committee on Lands and Forestry for consideration and report to the House,” the Speaker ruled.

But before the referral could proceed, former Lands and Natural Resources Minister, Samuel Abu Jinapor raised concerns over the propriety of laying the same agreement that, according to him, had been rejected by the previous Parliament.

Samuel Abu Jinapor Raises Concerns

Mr. Samuel Jinapor, now a member of the Minority side, invoked Standing Order 97, arguing that the Speaker could use his discretion to reject the laying of the document.

He recalled that during the Eighth Parliament, when he served as Lands Minister, he had presented a similar agreement between the same parties, the Government of Ghana and Barari DV Ghana Limited, which generated significant national debate and was not approved.

“Mr. Speaker, yourself as Speaker of the Eighth Parliament took particular interest in that agreement and advised that the whole country must be carried along, because of its importance. That earlier attempt was not referred to a committee and was rejected by this House. The explanatory statement made by the current Minister is not different from what I presented then,” he said.

Mr. Jinapor, therefore, questioned “What has changed between the 2023 agreement and the 2025 agreement between the two parties?”

He reminded the Speaker of his earlier position that Ghana must secure full benefit from its lithium resources.

“Lithium is the mineral of the future. It is the bedrock of green transition. When the Speaker insisted in the Eighth Parliament that Ghana should get the full benefit of our mineral resources, one could not disagree. But the question today is, what has changed?”

Majority Leader Counters

The Majority Leader, Mahama Ayariga, disagreed sharply with Mr.Jinapor’s assertion that Parliament had rejected the agreement in the past. “First and foremost, Mr. Speaker, the Honourable Abu Jinapor got his facts wrong. You brought the agreement to this House when you were Minister. It was referred to the Committee, but it never came back to the floor for consideration. Therefore, it was not rejected by Parliament,” he said.

Majority Leader Mahama Ayariga

Mr. Ayariga added that the inability to conclude deliberations on the previous lease was due to legal disputes that plagued the final months of the Eighth Parliament.

“That Parliament was plagued with injunctions and litigations, making it ineffective. So, the matter was never concluded,” he explained.

“When matters are left pending after a Parliament ends, it is standard practice to bring them back afresh. That is why this agreement has returned.”

He also stated that the government had changed and that Ghanaians had entrusted the new administration to manage the country’s resources.

Mr. Ayariga urged MPs to allow the Committee to deliberate transparently, after which the House could debate and vote on the agreement.

Minority Leader Pushes Back

Responding, Minority Leader Alexander Afenyo-Markin insisted that the Majority Leader’s account was inaccurate.

“If he argues that the agreement never came back to this House, he is wrong,” Afenyo-Markin said. “I was Majority Leader at the time, and I can state that when the then Minister appeared before the Committee, the NDC side held a press conference opposing the agreement in its entirety,” he added.

He recalled heated exchanges during the last Parliament that prevented the laying of the earlier lease, claiming that NDC MPs had vowed there would be “chaos” if the paper was laid.

“Mr. Speaker, those were their words. And today, the same agreement, even in a worse state, is being brought back. Royalties have been lowered and yet the same people who opposed it then are now defending it,” he charged.

Mr. Afenyo-Markin accused the Majority side of inconsistency, saying “If yesterday you told Ghanaians a particular agreement was bad for the country, and today you bring the same deal unchanged, simply because you are in the majority, then where is the principle?”

Speaker Clarifies

In his final ruling, Speaker Alban Bagbin clarified that the earlier lease was never rejected by the House, but was withdrawn before consideration. He explained that under Standing Order 97, once a paper is laid and referred to a committee, the Speaker no longer has discretion to block it.

“The records show that the lease was not rejected. It was only insisted that there should be pre-laying consideration, but it was never presented and rejected by the House.”

He urged members to allow the Committee on Lands and Forestry to undertake a thorough review, assuring all sides that the process would be transparent.

“Every member is allowed to attend the committee meetings and make contributions. The final decision will be taken by the House,” he said.

Mr. Alban Bagbin concluded by emphasising that the national interest must override partisan considerations, saying “Let us always agree that it is the national interest that prevails, not party interest.”

Background

The lithium lease agreement marks Ghana’s first commercial lithium project with Barari DV Ghana Limited, a subsidiary of Atlantic Lithium Limited, to operate the Ewoyaa mine, near Mankessim, covering an area of 42.6 square kilometers.

Under the agreement, Ghana will earn a 10% royalty, 13% free carried interest and additional equity participation through MIIF, which has invested US$32.9 million – comprising US$27.9 million for its 6% contributing interest and US$5 million for a 3.06% stake in Atlantic Lithium Limited’s global operations.

The US$250 million investment is expected to fund infrastructure, mining facilities and a local refinery to process lithium concentrate for export.

 

LEAVE A REPLY

Please enter your comment!
Please enter your name here