The Africa Policy Lens (APL) has cautioned that slashing the lithium royalty rate for Barari DV Ghana Limited from 10% to 5% could cost Ghana up to US$630 million in foregone earnings over the Ewoyaa Lithium Project’s 12-year lifespan.
The previous administration negotiated the 10% rate above the mining sector’s standard 5% with Cabinet approval, but the current government, once critical of it as too low, now proposes halving it amid falling lithium prices, sparking backlash.
At a December 9, 2025, Accra press conference, APL highlighted global best practices: royalties should not fluctuate short-term, even in sliding-scale systems, and should account for future price surges. They cited Zimbabwe’s recent 5% royalty plus 2% gross revenue levy as a counterexample of strengthening terms during downturns.
Based on the project’s feasibility study estimating all-in sustaining costs at US$610 per tonne against a US$1,587 benchmark APL projects 62% margins pre-royalties. At current US$1,000–1,195 prices, profitability holds above 40%. Halving the rate at US$1,000–3,000 per tonne and 350,000 tonnes annual output could forfeit US$210–630 million.
APL deems 10% economically viable and in Ghana’s interest, noting the project would remain attractive even at 30%, urging rejection of the cut to safeguard national revenue.
