Ghana’s Institute of Economic Affairs (IEA) has urged the government to suspend parliamentary ratification of a lithium mining agreement, warning that it fails to deliver adequate value to the state and entrenches investor-skewed terms.

The agreement under review involves Barari DV Ghana Limited, a subsidiary of Atlantic Lithium Ltd (LSE:ALL, ASX:A11), an exploration and development company focused on lithium projects in West Africa. Atlantic Lithium aims to develop the Ewoyaa Lithium Project, which it describes as a key near-term spodumene asset.

IEA analysts said the deal structure does not maximise national benefits and urged a renegotiation of royalty, equity and local-content components. The parliamentary majority argues that a 10% royalty rate agreed with Barari breaches Ghana’s Minerals and Mining (Amendment) Act, 2010, which sets a 5% royalty for such concessions.

IEA board chairman Charles Mensa said mining contracts in Ghana have historically favoured investors, limiting the country’s ability to fully capture the economic benefits of its natural resources.

In a Citi News report, he said the imbalance has contributed to Ghana’s repeated recourse to international support programmes, including engagements with the International Monetary Fund.

“Parliament must halt ratification of the Revised Lithium Agreement between Ghana and Barari, currently before parliament. This is critical because the agreement in its current form is not only a continuation of the colonial-type agreements Ghana has had in its gold and oil sectors, but fails to comply with the requirements of major international frameworks signed and ratified by Ghana,” Mensa said on December 9.

He cited several international instruments that require resource-rich countries to exploit natural assets for national benefit.

“The United Nations General Assembly Resolution 1803 (1962), United Nations General Assembly Resolution 3281 (1974) and the African Charter on Human and Peoples’ Rights and Other Protocols all enjoin resource-endowed countries to exploit their resources for their benefit,” he said.

“The IEA seeks a review of the lithium agreement to ensure greater state and local ownership and control within these international frameworks,” Mensa added.