PAG Condemns Ghana’s Unequal Lithium Agreement

  

The Progressive Alliance of Ghana (PAG) has called for the immediate withdrawal of the Barari DV–Ghana Lithium Agreement currently before Parliament, arguing that the deal violates the constitutional ownership rights of Ghanaians and represents yet another example of unfair exploitation of the country’s natural resources.
Addressing journalists at the Accra International Press Centre, PAG leaders insisted that Ghana must no longer accept mineral agreements that grant foreign companies overwhelming control and profit, leaving the Ghanaian people—legally recognised as the true owners of all natural resources—with only a “pittance.”
The group referenced the revised terms presented by Lands and Natural Resources Minister Emmanuel Armah Kofi Buah, who told Parliament that falling global lithium prices necessitated adjustments to royalty rates, VAT deferral, and logistical plans. Under the revised structure, Ghana is expected to hold a 13% free-carried interest, with a 5% royalty rate that may rise if market prices improve.
But PAG dismissed the arrangement as unjust and contrary to the spirit of the 1992 Constitution, which vests ownership of all minerals in the President on behalf of the people of Ghana. According to the group, a country with 34 million resource owners cannot accept minority stakes while foreign investors take home the bulk of the wealth.
To illustrate the imbalance, PAG cited a symbolic inheritance story and presented a 10-year overview of Ghana’s resource earnings. Their estimates show that while gold, oil, bauxite, and diamonds generated over US$92 billion between 2014 and 2024, Ghana received less than US$12 billion, leaving over US$80 billion in foreign hands.
“This is the story of our gold, our oil, our bauxite—year after year, billions leave Ghana with the consent of our governments while our people remain poor,” the group declared.
PAG is proposing a radical shift in ownership structure for all mineral agreements and specifically for the lithium deal: Ghana must hold 85% ownership, with the foreign partner capped at 15%, reflecting the true value of the nation’s resource contribution.
They further proposed a joint-venture Special Purpose Vehicle (SPV) where Ghana’s equity share would be determined by the value of the mineral resource itself—not merely the capital investment of the foreign company.
The group insisted that lithium should not be exported as raw ore but processed locally, culminating in the capacity to manufacture lithium-ion batteries critical for the global electric vehicle industry.
“If the investor is unwilling to accept equitable terms, Ghana should leave the lithium in the ground until we are ready,” the group stressed.
PAG’s presidential aspirant, Dr. John Kpikpi, reaffirmed that Ghana must break free from exploitative resource agreements and adopt a future in which citizens truly benefit from the minerals beneath their land.