To understand the emerging discussions on Ghana’s lithium mining, we tapped the insights of Mr. Kwawukume, a leading advocate in mineral economics and sustainable development, to shed some light on the nuances of this high-stakes issue.
Lithium mining in Ghana, particularly the Ewoyaa project, led by Atlantic Lithium Limited, is set to become the nation's first lithium mine, with a 15-year lease granted by the government covering 42.6 km² in the Central Region. It is expected to produce 300,000 tons of spodumene concentrate annually over 12 years, positioning Ghana among the top ten lithium projects worldwide. Recent financial revisions by the government have increased the royalty rate from 5% to 10%, while state interest has risen from 10% to 13%. Additional provisions include a 1% contribution to community development and a 6% stake held by the Minerals Income Investment Fund.
Concerns have been raised regarding the current terms of the project, which may not sufficiently benefit the country. Suggestions for improvement include increasing the royalty rate to at least 15% and raising the state's stake beyond the current 13%. Additionally, there is a strong push for more transparent revenue management, stricter social and environmental safeguards, and enhanced compensation for affected communities. Advocates are also calling for local content requirements to boost employment and foster industries related to lithium processing and battery manufacturing.
Community rights remain a key issue, as the processes outlined by environmental regulations are often ignored. Preliminary environmental reports and impact assessments, required by law, are not always shared with affected communities. We noticed that this poor local communication processes prevents communities from giving informed consent, leaving decision-making power to local authorities who may not always prioritize the interests of their people. Transparency and accountability in Ghana's mining operations, including Environmental Impact Assessments (EIAs) are also a major concern. Despite legal provisions, poor engagement of local communities in EIA processes impairs their ability to give free, prior, and informed consent (FPIC), as required by both national law and international frameworks such as the Universal Declaration of Human Rights (UDHR) and the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP). Meaning, decision-making power is left to local authorities, marginalizing community voices, which could potentially lead to inadequate compensation for the environmental and social disruption caused by mining activities.
There is a need for enforcement of environmental protections and compensation processes for those affected by mining activities. At the same time, clearer guidelines on benefit-sharing and greater local involvement in the mining process are essential to building trust and ensuring that the economic and environmental impacts of lithium mining are managed responsibly. The environmental and social impacts of lithium mining are significant. Large-scale excavation disrupts ecosystems and threatens water resources, while local communities face displacement and health risks due to pollution. The outdated Mining Law of 2006 (Act 703) does not adequately address the challenges posed by lithium extraction, highlighting the urgent need for updated regulations and stricter enforcement. Ensuring sustainable and fair mining practices will require reforms in both legal frameworks and community engagement strategies, ultimately balancing economic development with environmental and social responsibility.
CALL TO ACTION:
Stand for Fair Compensation and Community Rights!
Stand up for the rights of those displaced by mining! Demand fair compensation for all affected, especially those lacking formal land titles. Our communities deserve more than empty promises. They need real, equitable solutions that respect their land, heritage, and livelihoods.
Stand for a Just Mining Sector!
Mobilize all stakeholders including government, mining companies, local communities and civil society, to demand a fair and sustainable mining industry! We need collective action to tackle the challenges of lithium mining, ensuring that its benefits are shared justly and that community rights and well-being are front and center. Let’s make our voices heard and drive the change we need.
Full Report Available Here
ACKNOWLEDGEMENT
This publication, part of the Scaling-up Climate Action, Leadership and Engagement Framework (SCALE-West Africa) Framework, represents our collective vision of a thriving West Africa where ecosystems thrive, biodiversity is protected, and communities sustainably manage their resources. We deeply appreciate the invaluable contributions and steadfast support of all partners who have helped shape this framework. Your dedication is key to advancing transformative climate action and fostering a resilient, sustainable future for the region. Thank you for your unwavering commitment and collaboration.
Comments