Despite the high hopes and fanfare surrounding Ghana’s first lithium-mining deal signed in October 2023, no mining activity has yet begun, and the project remains stalled for multiple reasons.
Key hurdles delaying the project
- Parliamentary ratification stalled: Although the lease agreement between the Ghanaian government and the developer was finalised in 2023, it still must be ratified by Parliament before full operations can begin. Political gridlock, including disputes over vacant parliamentary seats in late 2024, led to a freeze in this process.
- Market headwinds: The global price of lithium has fallen sharply from peak levels, significantly altering the economics of the project. What once looked like a high-margin venture now faces much tighter returns.
- Feasibility constraints: A feasibility study submitted by the operator concluded that building a local processing plant was not viable under current conditions, citing limited output volumes and a lack of local industrial value-chain infrastructure.
- Fiscal negotiations: The company is seeking adjustments to the royalty and tax framework, arguing the original terms are no longer viable given weaker prices. Meanwhile, civil-society groups warn that any permanent concessions could cost Ghana much of its future upside.
- Risk to investor confidence: The delays, coupled with market uncertainty, are raising concerns about Ghana’s ability to deliver timely approvals for critical green-minerals projects, which could deter future investment.
What’s next?
The new government has signalled that the lease will be revised before being presented for ratification. The outcome will test Ghana’s ability to balance value-adding, local participation, and investor confidence.
Why it matters
This delay underscores how even “high-priority” mining agreements can stall when regulatory, market and infrastructure issues converge.
Ghana risks missing a window of opportunity in the global battery-metals race if the project remains inactive. At the same time, proceeding without the right fiscal framework could leave the country short-changed.