By Valentia Tetteh
The government has laid before Parliament the Minerals and Mining Royalty Regulations, 2025, a new Legislative Instrument (L.I.) designed to introduce variable royalty bands for gold, lithium and other mineral resources.
The proposed regulations establish a sliding-scale royalty framework, allowing royalty rates to adjust automatically in response to changes in global commodity prices. The initiative, according to the government, is aimed at ensuring the state derives maximum benefit during periods of high commodity prices while offering relief to investors during downturns.
Speaking to journalists in Parliament after laying the instrument, the Minister for Lands and Natural Resources, Emmanuel Armah-Kofi Buah, said the approach balances national interest with investor confidence.
“Today, I’m proud to say that I have brought a regulation that gives us a sliding-scale agreement. The advantage is that it allows the state to capture the benefit in good times, like in the gold sector, and we have applied this across the mineral sector,” he stated.
Mr Buah explained that under current market conditions, lithium attracts a seven percent royalty, but this could rise to as much as 12 percent if global prices increase.
He noted that when Ghana’s lithium agreement was initially negotiated, prices were around US$3,000 per tonne, resulting in a 10 percent royalty rate. Under the new framework, higher prices would yield increased returns for the state.
“With the sliding scale I’ve introduced, once prices move beyond US$2,500, which gives us 10 percent, any rise above US$3,000 will attract up to 12 percent. If you do the calculations, at that level the government is saving almost over US$500 million,” he explained.
The Minister added that the framework also protects mining companies during periods of price decline, as royalty rates would automatically adjust downward.
“This sliding scale also gives the companies consideration when prices tumble in difficult times. The adjustment will automatically favour lower royalties,” he said.
According to Mr Buah, the regulations provide predictability and certainty for investors by removing uncertainty around fiscal terms.
“What is important for investors is certainty. They are assured that when prices fall, the government will not impose harsh terms, and when prices rise, the state will also fairly capture the benefit,” he noted.
Beyond royalty adjustments, the regulations introduce a one percent Community Development Fund, dedicated to financing infrastructure projects in the Mfantseman Municipality. The Minister said the inclusion of infrastructure provisions marks an improvement over earlier agreements.
“Infrastructure provisions were not part of the 2023 agreement. I am happy to say that we have strengthened it, and it is now included in the agreement laid today,” he added.
The L.I. applies to all mining agreements and is expected to enhance transparency, improve revenue mobilisation and strengthen Ghana’s mineral governance framework once approved by Parliament.
However, the Ranking Member on the Lands and Natural Resources Committee, Kwaku Ampratwum-Sarpong, has raised concerns about the new lithium arrangement, arguing that it undermines public interest and could weaken confidence in the country’s resource governance system.
Parliament is expected to subject the Legislative Instrument to further scrutiny before it comes into force.
