Ewoyaa Chiefs reject 5% lithium royalty rate

Traditional leaders of Ewoyaa, Krampakrom, and nearby communities in the Central Region have rejected the government’s decision to cut Ghana’s lithium royalty rate from 10% to 5%, saying the move shortchanges the very communities affected by mining.

The reduction was made after Barari Ghana Limited requested a review of its mining lease, citing a major drop in global lithium prices.

According to the chiefs, they only learned of the consultation process when a notice inviting stakeholder input appeared in the newspapers.

This coincided with a Resource Index Dashboard training session organised on Wednesday, November 26, by Friends of the Nation and the Africa Centre for Energy Policy (ACEP).

In an interview on Thursday, November 27, Charles Paa Grant, secretary to the chief of Krampakrom, called on the government to suspend the new 5% rate and conduct proper stakeholder engagement.

“In simple terms, we should maintain the 10%. They haven’t stated whether the new rate will last a year or more. If prices go up, they might increase it again. But insisting on 5% now is cheating us,” he said.

The chiefs warned that lowering the royalty rate could deprive their communities of essential development projects and social infrastructure expected from the mining revenue.

Residents, mostly farmers, also expressed frustration, saying their livelihoods are already being affected even before large-scale mining begins.

“They’ve stopped us from farming. Since last year, we can’t build, farm, or do many things. In this period, how are we supposed to survive? Will they compensate us?” one resident questioned.