Ghana Sticks with 5% Lithium Royalty; Cabinet to Approve New Mineral Guidelines
Lands and Natural Resources Minister Emmanuel Armah Kofi Buah has confirmed that the current royalty rate for lithium in Ghana remains 5%, with Cabinet set to approve a comprehensive royalty framework for all minerals before presenting it to Parliament.
Speaking at a press conference on Tuesday, December 3, 2025, Buah clarified that while initial proposals in the lithium agreement ranged from 3% to 6%, the rate was finalized at 5% — the only enforceable figure due to the absence of a formal legislative instrument (LI).
“The current applicable rate for royalties is 5%. We’ve taken steps with the Attorney General and Cabinet to ensure there is a permanent guideline on royalties not only in the lithium sector but across all minerals,” he said.
New Framework on the Way
The government is finalizing a new legislative instrument to:
Standardize royalty rates across all mineral resources
Enhance transparency and investor confidence
Protect national interests
Buah emphasized that the lack of an LI had left the 5% rate as the default and legally binding figure under existing law.
Global Lithium Market Slowdown
The minister also addressed challenges in the sector, noting a sharp decline in global lithium prices that has:
Stalled major projects worldwide
Delayed investment decisions in Ghana
Despite this, he reaffirmed Ghana’s commitment to value addition and local participation in the lithium value chain.
Next Steps
Cabinet approval expected soon
Parliamentary presentation to follow
New guidelines to provide long-term clarity for investors and government
The move comes as Ghana prepares to commence lithium production under its landmark deal with Barari DV Ghana Limited, a subsidiary of Atlantic Lithium, at the Ewoyaa project — the country’s first lithium mine.
