Parliament has approved the controversial lithium mining agreement following a heated debate, with the Majority side securing its passage despite a unanimous rejection by the Minority Caucus.
Minority Leader Alexander Kwanena Afenyo-Markin led the opposition, citing unresolved environmental, fiscal, and infrastructure concerns. He confirmed that all 87 Minority Members of Parliament voted against the motion, raising particular objections to the sliding scale royalty regime, which he argued could undermine revenue predictability for the state.
The agreement, however, received backing from the Majority after the Minister for Lands and Natural Resources, Emmanuel Armah-Kofi Buah, urged the House to support the deal, highlighting its projected benefits for local communities and national development.
Committee Report Highlights Benefits
Presenting the report to the House, Chairman of the Lands and Natural Resources Committee, Collins Dauda, outlined several benefits tied to the agreement.
Key among them is the establishment of a Community Development Fund (CDF), which will receive 1% of annual revenue from the project. The fund is expected to generate over $6 million annually to support infrastructure, scholarships, healthcare, and education in affected communities.
The report also noted that local procurement initiatives and infrastructure development have already begun, with support from Paramount Chiefs and community leaders. In addition, compensation and resettlement committees have been set up to address the needs of persons affected by the project.
Divergent Views in Debate
Seconding the motion, Hon. Akwasi Kunedu acknowledged that the decision reflected a majority position, while raising concerns about the long-term benefits of the agreement for Ghanaians. He stressed the global importance of lithium in clean energy transitions and the need for Ghana to mine the resource responsibly. He also referenced the requirement for the company to list on the Ghana Stock Exchange, which has already been fulfilled.
Hon. Yusif Sulemana supported the agreement, pointing to improvements made after stakeholder engagements. He highlighted the increase in Ghana’s free carried interest from 10% to 13%, provisions for value addition, and plans for infrastructure expansion. He urged the House to ratify the agreement in the national interest.
However, Damongo MP Samuel Abu Jinapor strongly criticized the deal, arguing that it is less favorable than a previous version. He noted that the earlier proposal secured a combined 19% stake for Ghana—13% free carried interest and an additional 6% through the Minerals Income Investment Fund (MIIF). He questioned the absence of a binding requirement for MIIF’s equity participation in the current agreement.
He also raised concerns about value addition, stressing the need for Ghana to avoid exporting raw lithium and instead ensure local processing, including the establishment of a refinery.
Environmental Concerns Raised
Former Finance Minister Mohammed Amin Adam also opposed the agreement, citing significant environmental risks such as water pollution, soil degradation, and hazardous waste. He called for stronger safeguards, including environmental bonds, enforcement of the polluter-pays principle, and an increase in the Community Development Fund allocation to between 2% and 3%.
Government Defends Agreement
In his closing remarks, Minister Emmanuel Armah-Kofi Buah defended the agreement, emphasizing infrastructure components such as the construction of a jetty, barge, and mini-port within six months to reduce pressure on road networks caused by mining activities.
He urged Members of Parliament to support the agreement, describing it as a step toward unlocking economic opportunities and delivering tangible benefits to host communities.
Despite the sharp divisions, the Majority carried the vote, paving the way for the implementation of the lithium mining project.
Source: Clement Akoloh||parliamentnews360.com
