Speaking at a press conference organised by the Majority in Parliament in Accra yesterday, the Chairperson of the Committee on Lands and Natural Resources, Mr Collins Dauda, said that the proposed royalty rate contained in the agreement laid before the 8th Parliament was 10 per cent.

However, he noted that the Minerals and Mining Law had to be amended for the royalty rate of 10 per cent to be considered, as the royalty rate per the existing law was five per cent.

According to Mr Dauda, the lithium agreement between the government and Barari DV Ghana was unfair and discriminatory, as the 10 per cent royalty rate payment applied only to Barari DV Ghana and not to other mining companies such as Newmont Ghana Limited.

He said that the former Minister of Lands and Natural Resources, Mr Samuel Abu Jinapor, failed to ensure the amendment of the Minerals and Mining Law despite advice from the committee to align with the proposed 10 per cent royalty rate.

In addition, Mr Dauda said that a report on the lithium agreement between the government and Barari DV Ghana was not presented to the House under the eighth Parliament.

He therefore urged the Minister of Lands and Natural Resources, Mr Emmanuel Amarh-Kofi Buah, to ensure that the Minerals and Mining Law was amended.

“In the renegotiated agreement that was recently laid before the ninth Parliament by the Minister, the government did not specify any percentage, but said that royalties would be paid as prescribed by law. What it means is that what is prescribed by law is five per cent. Revenues generated from the five per cent royalty and 10 per cent royalty cannot be the same. The preference is to have 10 per cent or more. But the same conditions that were raised in the previous regime arise. The law must be amended,” Mr Dauda said.

He indicated that the committee would not rush to present a report on the agreement to Parliament for consideration and ratification but would engage extensively with all relevant stakeholders to seek their opinion on it.

“Because of the attention that the royalty rate has attracted in the country, I wish to state that it is our wish that the Minister presents the amendment to the Minerals and Mining Act so that the committee will take the amendment alongside the agreement,” Mr Dauda said.

Mr Dauda expressed the commitment of the government to ensuring that the benefits derived from lithium mining would enhance the livelihood of the citizenry.

The Majority Chief Whip, Mr Rockson-Nelson Dafeamekpor, indicated that mining companies operating under the five per cent royalty rate would have their contract agreements reviewed once they end, should the Minerals and Mining Law be amended.