IEA Urges Parliament to Halt Lithium Agreement Ratification, Cites Poor Value for Ghana
The Institute of Economic Affairs (IEA) is calling on Parliament to suspend the ratification of the revised lithium mining agreement between the government and Barari DV Ghana Limited, warning that the deal does not deliver adequate economic value to the state.
The intervention comes amid concerns from the Majority Caucus that the negotiated 10% royalty rate breaches the Minerals and Mining (Amendment) Act, 2010 (Act 794), which prescribes a 5% royalty for mineral concessions.
At a press briefing on Tuesday, December 9, IEA Board Chairman Dr. Charles Mensa argued that Ghana’s extractive agreements have historically been structured to favour foreign investors at the expense of national interest, a trend he said has prevented the country from maximising long-term value from its natural resources.
He linked these structural weaknesses to Ghana’s repeated dependence on international financial support programmes, including engagements with the International Monetary Fund (IMF).
“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 fails to comply with the requirements of major international frameworks signed and ratified by Ghana,” he stated.
Dr. Mensa referenced several international legal instruments including UN General Assembly Resolution 1803 (1962), UN General Assembly Resolution 3281 (1974), and provisions under the African Charter on Human and Peoples’ Rights — which affirm the right of resource-rich countries to exercise full sovereignty and benefit equitably from their natural endowments.
“The IEA seeks a review of the lithium agreement to ensure greater state and local ownership and control within these international frameworks,” he added.
The IEA’s intervention adds to growing scrutiny of the lithium agreement, which has become one of the most contested natural resource negotiations in recent years, with civil society groups, policy analysts and industry experts demanding enhanced fiscal terms and stronger local value retention.
