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Home»Ghana Business»Deep Dive into FoN Report Exposes Critical Rights Violations in Ghana’s Lithium Exploration Amid Compensation Disputes
Ghana Business

Deep Dive into FoN Report Exposes Critical Rights Violations in Ghana’s Lithium Exploration Amid Compensation Disputes

GN ReporterBy GN ReporterJuly 4, 2026Updated:July 9, 2026No Comments5 Mins Read
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A comprehensive five-year investigation by Friends of the Nation (FoN), a leading socio-environmental advocacy group, has exposed systemic violations of farmers’ rights in Ghana’s Ewoyaa Lithium Project, operated by Atlantic Lithium Company. The report, conducted in collaboration with Oxfam, a global confederation of NGOs dedicated to combating inequality and poverty, reveals widespread abuses—particularly between 2017 and 2019—during the project’s initial geological exploration phase. The affected communities, primarily in Mfantseman Municipality and Abura-Asebu-Kwamankese District of the Central Region, have faced severe socio-economic consequences due to uncompensated land invasions, crop destruction, and unresolved psychological impacts.

Key Findings: Compensation Failures and Legal Violations

The FoN report highlights three major areas of concern:

  1. Lack of Prior Notification and Compensation Disputes
    Farmers in affected communities reported that their lands were invaded without prior notice, leading to the destruction of crops and livelihoods. Despite legal obligations under Legislative Instrument (LI) 2175 (2021), which mandates fair compensation for land use disturbances, many farmers received inadequate or no compensation at all. The report cites cases where entire harvests were lost, leaving predominantly agricultural households in financial distress.

  2. Exclusion of Naturally Occurring Trees from Compensation
    A particularly contentious issue was the exclusion of naturally occurring trees from compensation calculations, despite their economic and cultural significance. Many families in communities like Krampakrom relied on these trees for charcoal production, a critical income source. The report states that landowners were forced to sell trees at GH¢1,000 per acre—far below their true value—to sustain their livelihoods. This practice violated LI 2175 (2021), which requires compensation for loss of expected income, including from customary tenancy and disturbances caused by mineral rights.

Specifically, regulation (3)(1)(b) of LI 2175 (2021) mandates that evidence of families selling naturally occurring trees to charcoal producers must be considered in compensation. However, the report reveals that this provision was systematically ignored during negotiations, leaving affected households without recourse.

  1. Psychological and Emotional Distress Without Resolution
    Beyond material losses, the report documents unresolved emotional and psychological impacts on farmers, particularly during the exploration phase. The uncertainty, disruption of daily routines, and lack of transparent communication from the company have led to long-term stress and economic instability for affected families.

Community Engagement and Power Imbalances

FoN’s research involved extensive community engagement, including public education campaigns, advocacy, and collaboration with local stakeholders. The organization worked closely with:
– Community Negotiation Committees (CNC), responsible for negotiating compensation.
– Community Resettlement Committees, overseeing relocation processes.
– Assembly and departmental staff, as well as opinion leaders and media outlets to amplify community concerns.

However, the report underscores significant power imbalances in negotiations, where certain community members—particularly women—were marginalized or intimidated for expressing dissent. Mr. Solomon Kusi Ampofo, FoN’s Natural Resource Governance Coordinator, highlighted that women’s representation in negotiation committees was below 10%, and some female members were excluded after voicing concerns.

A female committee member from Krampakrom cited in the report recounted:

“I was expressing my opinion on how fair the compensation should be. My Chief didn’t like the approach I used. After that meeting, I wasn’t invited again.”

Ampofo also noted that dissenting voices were often silenced, creating an environment where genuine grievances were suppressed.

Atlantic Lithium’s Response and CSR Initiatives

In response to the report, Atlantic Lithium Company denied systemic rights violations, stating that landowners were notified through traditional authorities before exploration activities. The company affirmed its commitment to community welfare and pledged to continue engagement and Corporate Social Responsibility (CSR) initiatives, including investments in:
– Water infrastructure
– Schools and educational programs
– Social development projects

The company was praised for waiting patiently for parliamentary ratification of the lithium mining agreement before commencing operations, demonstrating a cautious approach to avoid further conflicts. Additionally, FoN’s observer access to some negotiation meetings was noted as a positive step, improving transparency and community understanding of mining processes.

Recommendations for Future Equity and Accountability

While acknowledging some progress, FoN’s report calls for immediate reforms to ensure fairer and more inclusive mining practices, including:
1. Protecting Dissenting Voices – Ensuring that all community members, especially women and youth, have equal representation in negotiation committees.
2. Strengthening Compensation Mechanisms – Full adherence to LI 2175 (2021), including inclusion of naturally occurring trees in compensation calculations.
3. Mandatory Psychological Support – Providing long-term counseling and economic recovery programs for affected farmers.
4. Transparency in Negotiations – Publicly documenting compensation agreements to prevent future disputes.

The Path Forward: Balancing Development and Justice

As Ghana moves toward large-scale lithium extraction, the FoN report serves as a critical warning about the human and environmental costs of unchecked mining operations. While economic growth is essential, the rights of indigenous communities must be prioritized to prevent social unrest and long-term economic harm.

The delayed parliamentary ratification of the lithium mining agreement presents a unique opportunity to address these grievances before full-scale operations begin. If not resolved, the current power imbalances and compensation failures could undermine trust in future mining projects, setting a dangerous precedent for Ghana’s resource sector.

For now, the Central Region’s farming communities remain in limbo—waiting for justice, fair compensation, and a mining industry that truly respects their rights.

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