Ewoyaa Traditional Leaders Reject 5% Lithium Royalty Rate, Accuse Government of Shortchanging Communities

 

Traditional leaders from Ewoyaa, Krampakrom, and nearby communities in the Central Region have strongly rejected the government’s decision to reduce Ghana’s lithium royalty rate from 10% to 5%. They argue that the revision shortchanges the very communities expected to bear the environmental and social impacts of lithium mining.

The reduction follows a request by Barari Ghana Limited, operators of the Ewoyaa Lithium Project, who asked for a review of their mining lease due to falling global lithium prices.

According to the chiefs, they were not adequately involved in the consultation processes. Their attention was drawn only when a call for stakeholder input appeared in the newspapers, coinciding with a Resource Index Dashboard training organised on Wednesday, November 26, by Friends of the Nation and the Africa Centre for Energy Policy (ACEP).

Speaking to Citi News, Charles Paa Grant, secretary to the chief of Krampakrom, urged the government to suspend the implementation of the 5% rate and return to the original 10%.

He explained that maintaining the 10% royalty is in the best interest of affected communities, especially since future price hikes could prompt the government to reverse the reduction. “They are insisting on 5%, which is short-changing,” he added.

The chiefs further warned that the lower royalty rate could negatively affect development projects and essential infrastructure expected from the mining activities.

Residents, mainly farmers, have also raised concerns over disruptions to their livelihoods even before full-scale mining begins. They say they have already been prevented from farming, building, and engaging in economic activities for over a year.

“They stopped us from working. We have not been farming since last year. They have deprived us of building, farming, and doing many other things. Within that time, what are we going to do? Are they going to compensate us?” one resident lamented.

The communities are calling for full engagement, fair compensation, and policies that genuinely reflect their long-term welfare as mining progresses.