Lands and Natural Resources Minister, Emmanuel Armah Kofi Buah, has clarified that the current royalty rate for Ghana’s lithium resources stands at 5%, while revealing plans to introduce a permanent, comprehensive framework for mineral royalties across the country.
Speaking at a press conference on Tuesday, Buah said the government has worked closely with the Attorney General and is now seeking cabinet approval to present a new instrument to Parliament that will regulate royalties for lithium and other minerals.
“The current applicable rate for royalties is 5%. We’ve taken steps with the AG and cabinet to ensure there is a permanent guideline on royalties not only in the lithium sector but across all minerals,” he explained.
The clarification comes amid questions over Ghana’s lithium agreement, which had seen initial royalty rates proposed at 3% to 6%, before being amended to 5%.
Buah noted that although the law required an instrument to guide the application of royalties, such an instrument had not been in place, leaving the original 5% rate as the technically enforceable figure.
He also highlighted the global context, pointing out that a downturn in international lithium prices has stalled several lithium projects worldwide, a development that could impact investment and production timelines in Ghana.
The move to formalise a comprehensive royalty framework is aimed at prioritising the government’s intention to ensure clarity and stability for investors while protecting Ghana’s natural resource interests.
Once approved by cabinet and passed in Parliament, the new instrument is expected to provide clear guidance on royalty arrangements for all minerals, strengthening transparency in the sector.