The government has introduced a sliding scale royalty regime for Ghana’s lithium mining project in response to fluctuations in global lithium prices, the Minister of State in charge of Government Communications and Presidential Spokesperson, Felix Kwakye Ofosu, has announced.

Speaking during the Government Accountability Series on Wednesday, Mr Kwakye Ofosu explained that the new arrangement was necessary to balance the interests of the state and investors, and to ensure the long-term viability of the lithium project.

According to him, volatility in the global lithium market made it impractical to maintain a fixed royalty rate. Under the new framework, royalty payments will adjust in line with movements in world market prices, with higher royalties applied when prices improve.

He noted that the decision was informed by the need to attract and retain investment in the sector, stressing that without reasonable returns, investors would be unwilling to commit the substantial capital required to develop the lithium resource.

Mr Kwakye Ofosu argued that leaving Ghana’s lithium deposits unexploited would deny the country the opportunity to generate revenue for development, particularly in mining communities. He said responsible extraction of the resource would provide funding for infrastructure, social services and local economic growth.

The government spokesperson disclosed that an earlier royalty proposal had drawn objections from key stakeholders, leading the sector minister to withdraw it and return with the revised sliding scale model. He expressed confidence that the new structure would address stakeholder concerns while ensuring the state derives fair value from its natural resources.

Mr Kwakye Ofosu added that government remains committed to continuous engagement with all stakeholders to build consensus and secure a sustainable framework for the exploitation of Ghana’s lithium resources.