Els: MBN360 News
Hon. Collins Dauda, Chairman of the Parliamentary Select Committee on Lands and Natural Resources, has officially presented the committee’s report on the Mining Lease Agreement between the Government of Ghana and Barari-DV Ghana Limited.
The report covers the proposed extraction of lithium and other associated minerals at Mankessim, situated within the Mfantseman Municipality of the Central Region. This formal laying of the document signals a critical turning point for the Ewoyaa Lithium Project, which has been under intense scrutiny since its initial signing in 2023.
The submission of this report follows a rigorous review process by the Select Committee, which was tasked with examining the fiscal and legal frameworks of the agreement in accordance with Article 268(1) of the 1992 Constitution.
“I rise to move that this House adopts the report of the Committee on Lands and Natural Resources on the Mining Lease Agreement between the Government of the Republic of Ghana, represented by the Ministry of Lands and Natural Resources, and Barari-DV, Ghana Limited, for the Mining of Lithium and Other Minerals at Mankessim in the Mfantiman Municipality of the Central Region.”Hon. Collins Dauda
Expanding on the initial findings, the committee highlighted that the project possesses a “huge potential to bring tremendous benefits to the country.” Beyond the national economic forecast, the report emphasizes that the venture is poised to contribute significantly to the socio-economic development of the local communities in Mankessim and surrounding areas through job creation and infrastructure support.
A Legislative Milestone Amidst Investor Anxiety
The laying of this report is more than a procedural formality; it is a long-awaited “de–risking” event.
Investors in Atlantic Lithium, the parent company of Barari-DV, have expressed mounting frustrations over the “prolonged delay” in ratification, which some argue has begun to “undermine confidence in Ghana’s mining sector.”
Since the agreement was first tabled, the project has faced a political and regulatory gauntlet, including a withdrawal of the lease in late 2025 to accommodate a new sliding-scale royalty structure.
The current report serves as the essential “final gateway” for the project. By recommending ratification, the committee provides the legislative green light necessary for the company to secure the remaining $185 million in development expenditure required to begin construction.
Industry analysts suggest that without this parliamentary resolution, the “capital-intensive nature of lithium refining” and the current “volatility in the spodumene market” would continue to deter the large-scale financing needed to transform Ewoyaa into Ghana’s first operational lithium mine.
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Fiscal Adjustments and National Interest
A central pillar of the committee’s recommendation is the alignment of the lease with the newly established Minerals and Mining (Royalty) Regulations, 2025.
This regulation introduced a progressive royalty framework where the state’s take fluctuates between 5% and 12% based on global lithium prices.
This “sliding-scale” mechanism was a key point of negotiation, designed to protect the project’s viability during price slumps while ensuring Ghana captures “greater upside” when market conditions improve.
The committee’s findings suggest that the Minister for Lands and Natural Resources has successfully balanced these commercial realities with the “national interest.”
The report notes that the state has secured a 19% total equity stake in the project, comprising a 13% free carried interest and an additional 6% held through the Minerals Income Investment Fund (MIIF).
This structure is intended to ensure that the “rape of Ghana’s mineral wealth,” as cautioned by some civil society groups, is mitigated through direct ownership and robust local content obligations.
The Road to First Production
With the report now before the plenary, the next stage is a formal vote by the House to ratify the lease by resolution. This step is the “primary catalyst” for the Final Investment Decision (FID) expected later this year.
The community of Mfantseman, represented by the Paramount Chief of the Nkusukum Traditional Area, has previously described the project as the “hope of the people,” urging Parliament to avoid further “stalled compensation plans” and land access restrictions that have fueled local hardship.
The successful ratification will not only unlock the Ewoyaa project but also set a precedent for Ghana’s “Green Minerals Policy.”
As the global energy transition accelerates, the House’s decision on this report will determine if Ghana can successfully diversify its “gold-focused portfolio” and establish itself as a hub for critical mineral production in West Africa.
