Lands Minister clarifies 5% lithium royalty, reveals new mineral policy push

Minister for Lands and Natural Resources, Emmanuel Armah Kofi Buah, has affirmed that Ghana’s current royalty rate for lithium remains fixed at 5%, while announcing that the government is finalising a comprehensive framework to guide royalty payments for all minerals.

Addressing journalists at a press conference on Tuesday, the minister said the government, working closely with the Attorney General, has completed processes to develop a new legislative instrument that will formalise royalty applications 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 stated.

His clarification follows ongoing public debate over the lithium agreement, which initially proposed royalty rates between 3% and 6%, before settling at the enforceable 5% under existing law.

Buah explained that although the Minerals Income and Investment Fund Act required an instrument to guide royalty application, no such instrument had been established, meaning the original 5% remained the legally binding rate.

He noted that the government’s move to formalise the framework is intended to bring consistency, clarity, and investor confidence to the sector.

The minister also placed Ghana’s lithium prospects within a global context, revealing that declining international lithium prices have stalled major projects in other countries. This, he said, could influence the pace of investment and production in Ghana.

“The lithium price downturn has affected several projects globally,” he cautioned, underscoring the importance of stable, predictable regulation for investors.

The new royalty instrument, once approved by cabinet and passed by Parliament, is expected to provide clear, permanent, and transparent guidelines for royalties on all minerals. The government believes the strengthened regulatory framework will protect Ghana’s natural resource interests while creating a more stable environment for mining-sector investment.

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