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Ghana’s proposed lithium royalty cut from 10% to 5% faces legal and financial criticism, with fears of $630M in lost revenue and precedent damage.
The Africa Policy Lens (APL) has criticized Ghana’s proposed reduction of the lithium royalty rate from 10% to 5% for the Barari DV Ewoyaa Project, calling it legally unfounded and harmful to national revenue.
The APL asserts the original 10% rate, approved by Cabinet and above the standard 5% for new mining deals, was lawful under Ghana’s Minerals and Mining Act, which allows negotiated rates for new agreements.
It warns the change could cost the country $210 million to $630 million in lost revenue over 12 years, undermines international best practices, and sets a damaging precedent.
The group urges Parliament to uphold the original agreement, noting the project remains profitable at current lithium prices and that other nations have raised rates despite market drops.
La reducción propuesta de las regalías de litio de Ghana del 10% al 5% enfrenta críticas legales y financieras, con temores de $ 630 millones en ingresos perdidos y daños precedentes.