Ghana to Introduce Comprehensive Lithium Mining Guidelines as Lands Minister Confirms 5% Royalty
Ghana’s Minister for Lands and Natural Resources, Emmanuel Armah Kofi Buah, has reaffirmed government’s decision to impose a fixed 5% royalty rate on all lithium production in the country. He also disclosed that Cabinet is currently reviewing a comprehensive set of guidelines designed to regulate lithium exploration, mining, processing, and export as Ghana positions itself within the global energy-transition economy.
Speaking during a media engagement, Hon Emmanuel Armah Kofi Buah stressed that lithium—now one of the world’s most strategic minerals—must be managed differently from traditional resources such as gold and bauxite. He explained that the government’s approach aims to strike a balance between attracting investment and ensuring that citizens benefit meaningfully from the nation’s green-energy mineral wealth.
According to the Minister, the proposed regulatory framework covers several critical areas, including licensing processes, value addition requirements, environmental protections, and community development obligations. He noted that Cabinet has already completed initial reviews and is at the final approval stage.
Hon Emmanuel Armah Kofi Buah emphasized that lithium presents enormous economic potential at a time when global demand for rechargeable batteries, electric vehicles, and energy-storage systems is soaring. For Ghana, he said, this moment offers an opportunity to leverage its mineral resources in a way that supports long-term industrialization and brings sustained revenue to the state.
He added that the 5% royalty rate is benchmarked against global lithium-producing jurisdictions, ensuring Ghana remains competitive while safeguarding the national interest. He argued that while royalty rates are important, the country’s biggest value lies in its commitment to local processing, technology transfer, and job creation.
In addition to the royalty structure, the Minister revealed that Ghana’s lithium agreements include provisions for state participation, local content requirements, and environmental safeguards that will guide companies operating in the sector. He stressed that the government is committed to transparency and accountability to avoid past mistakes seen in the management of other natural resources.
On value addition, Hon Emmanuel Armah Kofi Buah reiterated that the government has made it mandatory for lithium companies to establish local processing facilities. He explained that exporting raw minerals is no longer an acceptable model for an emerging green-energy economy. Instead, Ghana intends to integrate itself into the global value chain by supporting downstream industries such as battery manufacturing and chemical processing.
The Minister also touched on the importance of public engagement and stakeholder involvement. He acknowledged public concerns about resource exploitation and assured Ghanaians that the new guidelines provide strong protections for communities affected by mining operations. These include environmental regulations, reclamation obligations, and frameworks that ensure communities benefit from corporate social responsibility programmes.
He expressed optimism that Cabinet approval will pave the way for Ghana to become a major participant in Africa’s emerging lithium industry. He said that once finalized, the guidelines will shape the country’s approach to green minerals for decades, providing clarity for investors while safeguarding national priorities.
He concluded by urging Ghanaians to support the government’s efforts, noting that the global energy transition presents a once-in-a-generation economic opportunity that must be carefully harnessed for national development.
