The Controversy Surrounding the Royalty Rate Reduction in Ghana’s Lithium Mining Agreement: A Critical Examination

ABSTRACT

The October 2023 Lithium mining lease for Ghana’s Ewoyaa Project originally provided a 10% royalty on gross revenue, 13% free-carried interest, and 6% equity for the Minerals Income Investment Fund. Following a change of government in January 2025 and falling lithium prices, the deal was renegotiated into a sliding-scale royalty (5–7% baseline, rising to 12% or higher) under the Minerals and Mining (Royalty) Regulations 2025. Parliament ratified the revised Mining Lease Agreement on 19 March 2026. This article examines the economic, legal, and governance implications of the downward adjustment. Drawing on analyses by IMANI Africa, public statements by activist Bright Simons, parliamentary records, and comparative international cases, it argues that the revised terms unnecessarily sacrifice guaranteed revenue for uncertain upside gains. At current market prices ($900–$1,300 per tonne) and the company’s reported breakeven of $610 per tonne, the original 10% royalty would still have left Atlantic Lithium with healthy 30–45% margins while delivering Ghana an estimated additional US$1.8–21 million annually. The article further contends that the “illegality” justification for the 10% rate is legally untenable under the repealed 2010 Act and current Act 900 framework, and that weak refinery commitments perpetuate raw-export dependence. It concludes that, even after ratification, Ghana should now prioritize rigorous implementation monitoring, binding value-addition timelines, and stronger oversight to align the project with long-term national development objectives.