Amid the debate over Ghana’s lithium royalty rate, the government has signalled that it is considering a sliding-scale royalty system for its lithium industry; a move long demanded by experts, civil society groups, and policy analysts.
The groups over the years have pushed for a fairer, more flexible approach to mineral revenue.
At a press conference in Accra on Wednesday, December 3, 2025, the Minister for Lands and Natural Resources, Emmanuel Kofi Armah Buah, revealed that the government is actively considering the new model as global lithium prices continue to slump, slowing down projects worldwide and threatening jobs and investment in Ghana’s own lithium venture.
He explained that the recent fall in prices has hit the sector hard, putting planned jobs and local economic benefits at risk. This, he said, has made it necessary to rethink the fixed royalty agreement that was initially structured at a time when prices were expected to rise.
According to him, the government’s aim is to keep the project alive, safeguard jobs, and ensure Ghana earns a fair share from its resources, no matter the price swings. He noted that the President, together with the Central Region House of Chiefs and MPs, had all agreed that allowing the project to stall would be too costly for the region and the country.
The proposed shift to a sliding-scale royalty would allow Ghana to take a lower royalty when prices fall, helping companies remain viable, but automatically raise the royalty when prices climb, ensuring the country benefits from market booms.
The Minister illustrated that if Ghana charges 5% royalty when gold is $2,000 per ounce, it makes sense to adjust it if the price rises to $4,000. To him, this flexible approach is long overdue.
“The recent market developments have underscored the limitations of a static royalty system. Clearly, it is therefore incumbent upon us to consider a more responsive mechanism. A more responsive mechanism that can respond to the changing market conditions. That will also ensure that our country wins at all times,” the Minister said at the press conference.
He added, “Nobody can convince me that when an ounce of gold was 2,000, and the royalty was 5%, when it gets to 4,000, we can’t have a discussion about an adjustment. Clearly, this is a clear opportunity to review all the royalties in the whole mining sector. And I’m happy I’m doing exactly that.”
This announcement marks a significant milestone for advocacy groups who have argued for years that fixed royalties leave Ghana short-changed in good times and vulnerable in downturns.
Many CSOs have pushed for progressive royalty systems used successfully in other mining jurisdictions.
The experts and analysts have earlier indicated that for communities in the Central Region who fear losing the economic promise of the lithium project, the sliding-scale approach offers hope.
It ensures the project can survive tough market conditions while guaranteeing that Ghana does not miss out when prices bounce back.
