Government Introduces Sliding Scale for Lithium Royalties as World Market Prices Fluctuate

The government has introduced a sliding scale mechanism for royalties on the country’s lithium mining project in response to fluctuations in world market prices, the Minister of State in charge of Government Communications and Presidential Spokesperson, has announced.

Felix Kwakye Ofosu explained on Wednesday that the adjustment was necessary to make the lithium project viable for both the government and investors, ensuring that returns justify the investment required to exploit the resource.

“The Lands Minister has explained that developments in the world market price of lithium has compelled the introduction of a sliding scale, so that as the world market price improves, a certain percentage of royalties is charged. That is necessary to make the project viable,” he said during the Accountability Series.

Mr. Kwakye Ofosu noted that without adequate returns, no investor would commit resources to the project, leaving Ghana’s lithium deposits unexploited in the ground. 

He argued that it is better for the resource to be extracted to finance development in mining communities rather than remain dormant.

The Minister revealed that an initial royalty proposal had faced objections from stakeholders, prompting the minister to withdraw and return with the sliding scale arrangement. 

He expressed confidence that the revised structure should address previous concerns while ensuring stakeholder engagement continues to achieve common ground on the way forward.

The government has also confirmed that the National Council for Curriculum and Assessment has withdrawn and revised a physical education and health manual for senior high schools following public outcry over content deemed offensive to Ghanaian cultural norms. 

Mr. Kwakye Ofosu disclosed that NaCCA had already withdrawn approximately 700 copies of the manual before public criticism intensified, with the approved version no longer containing the problematic language.

The spokesperson clarified that the manual is an instruction guide for teachers of physical education and health in senior high schools, and that only one line containing a description of gender proved problematic and offensive to Ghanaian sensibilities. 

He emphasized that the government is not promoting anything at variance with Ghanaian culture, and while scrutiny is welcome, claims should be measured and accurate.

“Government certainly is not allowed to promote anything that is at variance with Ghanaian culture. So, whereas we welcome scrutiny, it’s important that such claims are toned down. Overzealous sensationalism is not something that we should encourage,” he said, describing the situation as an oversight rather than deliberate government policy.

When asked about appointments for Ministers of Defence and Environment, Science and Technology, Mr. Kwakye Ofosu said the President has not communicated any specific timeline for these positions. 

He noted that ministers responsible for these portfolios are currently working and their output has been satisfactory, adding that once the President decides to make appointments, the information will be disseminated through usual government channels.

The Minister also confirmed that disputes involving military personnel would be addressed through established protocols and processes to ensure resolution within acceptable limits. 

Richard Aniagyei, ISD

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