Ghana has taken a significant step toward becoming a key player in the global green energy transition following Parliament’s ratification of a mining lease agreement between the Ministry of Lands and Natural Resources and Barari DV Ghana Limited. The deal authorizes the extraction of lithium and associated minerals at Mankessim in the Central Region.
The agreement grants Barari DV Ghana Limited a 15-year mining lease, with options for renewal in strict accordance with the Minerals and Mining Act, 2006 (Act 703). This move is expected to position Ghana as a strategic hub for battery mineral production in West Africa.
Under the finalized terms, the Government of Ghana has secured a 13 percent free-carried interest in the rights and obligations of the mineral operations. This ensures that the state maintains a significant stake in the venture without the burden of upfront capital contributions.
Addressing the House, the Minister for Lands and Natural Resources, Emmanuel Armah-Kofi Buah, clarified the fiscal benefits of the deal. He noted that following the ratification, the firm is required to pay a 12 percent royalty rate, a figure determined in alignment with the Minerals and Mining (Royalty) Regulations, 2025.
A key component of the agreement is the focus on host-community welfare. The current terms earmark one percent of the company’s annual revenue for a dedicated Community Development Fund, intended to drive local infrastructure and social projects.
However, the provision sparked debate on the floor. The Ranking Member of the Finance Committee and former Finance Minister, Dr. Mohammed Amin Adam, argued for a more aggressive benefit-sharing model.
He called for an upward revision of the community contribution from one percent to three percent of annual revenue to ensure that the residents of Mankessim and surrounding areas derive maximum benefit from the extraction of these high-value minerals
Story by: Eugenia Ewoenam Osei
