After months of intense debate, criticism, and back-and-forth in Parliament, the government has returned with what it describes as a significantly improved third lithium agreement to Parliament pending ratification.
The new deal, which is the third deal presented to the House so far, was laid before Parliament before it rose for the Yuletide holidays. This means the deal will be considered after the House resumes from the break.
Considering the controversies, the debates, and the back and forth that characterized the two earlier deals, many Ghanaians are asking, what makes this new agreement new and different from the earlier deals?
Were the interests of the nation and the people in the affected communities paramount?
The High Street Journal conducted a deep dive into the new deal to find the modifications and the additions introduced in this latest agreement, which is pending ratification.
Here are the things we found:
A Sliding Scale Regime – Major Win for CSOs
After the advocacy by some concerned CSOs, the new deal is built around a new royalty system designed to better protect Ghana’s interests. The High Street Journal finds that at the heart of this latest deal is a new Legislative Instrument, the Minerals and Mining Royalty Regulations, 2025, which introduces a sliding-scale royalty regime for lithium, gold, and other minerals.
Unlike previous agreements with fixed royalty rates, this framework allows royalties to rise or fall automatically depending on global commodity prices.
The Minister for Lands and Natural Resources, Emmanuel Armah-Kofi Buah, says the goal is to ensure Ghana earns more when prices are high, while giving mining companies breathing space when prices fall.
A Starting Royalty Rate of 5%
Under the new deal, Ghana’s lithium will attract a minimum royalty rate of 5 percent. However, if global prices rise, that rate can climb as high as 12 percent.
The minister explained that when lithium prices increase beyond certain thresholds, the state’s share automatically increases without the need to renegotiate contracts.
He explained that when Ghana’s first lithium agreement was negotiated, prices were around $3,000 per tonne, leading to a 10 per cent royalty. Under the new system, prices above that level would trigger even higher returns for the state.
“If lithium prices move beyond $3,000, the royalty goes up to 12 percent,” the minister said, adding that such a scenario could save Ghana more than $500 million in potential revenue over time.
1% Community Development Fund – A Welcome News for Residents of Ewoyaa
Beyond royalties, the third agreement introduces another major change, which is a one percent Community Development Fund.
This fund will be dedicated to infrastructure projects in the Mfantseman Municipality, where lithium mining activities are expected to take place. Roads, schools, health facilities, and other community needs are expected to benefit directly.
The Minister noted that this community-focused provision was absent from earlier lithium agreements, a gap that had drawn strong criticism from civil society groups and traditional leaders.
The new framework also applies across the entire mining sector, not just lithium. By extending the sliding-scale system to gold and other minerals, the government says it is creating consistency, fairness, and predictability in how Ghana earns from its natural resources.
The Bottomline
For investors, the minister argues, the new regime removes uncertainty. Companies can plan better, knowing that royalty adjustments will happen automatically based on price movements, rather than through political negotiations.
Moreover, the third agreement is the government’s attempt to respond to those concerns while keeping Ghana attractive to investors.
Amid these adjustments, the big question remains whether these adjustments go far enough to secure long-term national benefit from Ghana’s lithium resources or whether further changes will still be demanded.
