IEA Demands Immediate Halt to Lithium Agreement Ratification

By Praisebell Rosemond Larbi

The Institute of Economic Affairs (IEA) is calling on Parliament to immediately suspend the ratification of the government’s revised lithium mining agreement with Barari DV Ghana Limited, warning that the deal in its current form fails to secure fair value for the state and risks repeating the mistakes of past resource contracts.

Addressing a press briefing on Tuesday, December 9, IEA Board Chairman Dr. Charles Mensa criticized the agreement as yet another example of extractive-sector negotiations that favour foreign investors over Ghana. He argued that despite the country’s long history of mineral wealth, poorly structured contracts continue to limit the benefits citizens derive from these resources. This, he said, has contributed significantly to Ghana’s repeated dependence on international financial support, including recurring engagements with the International Monetary Fund (IMF).

Dr. Mensa stressed that Parliament must not proceed with ratifying the agreement, insisting that the current terms represent “a continuation of colonial-type arrangements” similar to those previously seen in the gold and oil sectors. According to him, the revised deal not only falls short of protecting Ghana’s long-term economic interest but also fails to meet the requirements of major international frameworks the country has signed and ratified.

“The agreement in its current form is not only a continuation of the colonial-type agreements Ghana has had in its gold and oil sectors, but fails to comply with the requirements of major international frameworks signed and ratified by Ghana,” he said. He cited the United Nations General Assembly Resolutions 1803 (1962) and 3281 (1974), as well as the African Charter on Human and Peoples’ Rights, all of which emphasize the sovereign right of resource-rich nations to exploit their natural resources in ways that maximally benefit their people.

Dr. Mensa explained that the IEA is advocating a comprehensive review of the lithium agreement to ensure greater state ownership, stronger community participation, and improved control of the resource value chain. He emphasized that Ghana must avoid repeating the patterns of past mining agreements that inadequately supported economic transformation.

“The IEA seeks a review of the lithium agreement to ensure greater state and local ownership and control within these international frameworks,” he added. The think tank further urged policymakers to adopt a more strategic approach to negotiating future critical mineral agreements, insisting that lithium, given its global demand surge, presents Ghana with a rare opportunity to realign its extractive sector for national development.