Ghana’s Ministry of Lands and Natural Resources has sent a revised lithium mining contract with Barari DV Ghana Limited to Parliament for consideration.
The new document concerns the company’s operations in the Central Region and was prompted by a sharp collapse in world lithium prices, which has made the original terms unworkable.
Minister of Lands and Natural Resources Emmanuel Armah-Kofi Buah explained that Barari DV requested a review after global market prices plunged from roughly $3,000 per tonne to about $630. He said the steep decline has rendered most lithium ventures across the globe financially unsustainable, forcing Ghana to adjust its agreement to keep the project alive.
The revised arrangement is expected to stimulate local employment while ensuring communities in the concession area still benefit from the resource. Under the new royalty structure, payments will start at five percent and rise to ten percent when the market rebounds.
Mr. Buah noted that the initial royalty increase to ten percent reflected high prices at the time, but the current market downturn called for temporary relief to sustain operations. The government, he said, views the adjustment as a pragmatic move to balance investor confidence with the country’s long-term economic interest.
