Ghana’s Parliament Ratifies Landmark Lithium Mining Lease for Ewoyaa Project Amid Minority Opposition

In a significant move to position Ghana within the global green energy supply chain, the Parliament of Ghana has officially ratified a 15-year mining lease agreement with Barari DV Ghana Limited. The deal authorizes large-scale lithium extraction at the Ewoyaa deposit in Mankessim, Central Region, covering an area of 42.63 square kilometers. The agreement comes after nearly three years of negotiations and is designed to capitalize on the surging global demand for lithium, a critical component in electric vehicle batteries and renewable energy storage systems. Under the terms of the lease, the Ghanaian government secured a 12% free carried interest in the project, alongside a sliding-scale royalty system starting at 12% linked to prevailing market prices. Additionally, the company is mandated to allocate 1% of its annual revenue to a community development fund and undertake feasibility studies for local infrastructure, including a mini-port and jetty.

Despite the government's optimism regarding socio-economic benefits, the ratification faced stiff resistance from the Minority Caucus in Parliament. Critics of the deal have expressed concerns over the adequacy of revenue-sharing and environmental safeguards. Samuel Abu Jinapor, the former Minister of Lands and Natural Resources, emerged as a vocal advocate for domestic value addition, cautioning against the export of raw lithium. Jinapor emphasized that for Ghana to truly benefit from its mineral wealth, local refining is essential. He backed provisions requiring Barari DV to establish a local refinery, arguing that a failure to process the ore domestically would repeat the historical mistakes of the gold and cocoa sectors. The political debate has also been shadowed by broader allegations of 'state capture' in the mining industry, though these claims were recently challenged in a public rebuttal defending the integrity of the Minerals Commission and the involvement of local business figures like Ibrahim Mahama and Ben Nunoo Mensah, the latter of whom holds a 10% stake in the Barari concession.

On the ground in the Central Region, the reaction from the Ewoyaa community is a mix of hope and urgency. While local leaders have welcomed the project for its potential to create jobs for the youth, residents have issued a two-month ultimatum for the payment of compensations to those displaced or affected by the mining operations. Community leader Frank Acquah stressed that timely settlements are crucial for maintaining social peace, while Member of Parliament Dr. Prince Arhin assured the public that administrative delays would be minimized. As the project moves toward execution, the focus shifts to regulatory clearances and ensuring that Barari DV complies with the environmental and value-addition mandates set by Parliament to ensure the 'white gold' boom benefits the citizens of Ghana.