The Lithium Deal – All You Need To Know

The government through the minerals commission has granted Barari DV Ghana Limited a subsidiary of the Atlantic Lithium Limited a 15-year lease to begin the construction and mining of lithium at Ewoyaa in the Mfantseman Municipality of the Central Region.

The lease includes new contract terms of operation intended for the ideal benefit of the country. As part of the lease is the increase in royalty rate, and state and Ghanaian participation.

Upon completing the feasibility studies and negotiation between the company and the government of Ghana, the mining lease covers an area of about 42.63 square kilometres and grants the company the exclusive right to work and produce lithium and associated minerals in the area.

The promotion of green energy in the environment is now imperative as the world battles against the vast production of fossil fuels and climate change. Thus, after a series of engagements the government approved.

The Minister for Lands and Natural Resources speaking at a short ceremony before the signing of the lease said “The Lease we are signing today differs from our standard Mining Lease, in that, it incorporates the agreed terms we have concluded with the company, based on the Policy approved by Cabinet,” said the minister.

Mr Jinapor further expatiated terms of the lease by stating royalty rate has been increased to ten per cent (10%) from the standard five percent (5%), and the State’s free carried interest in the mining operation has been increased from ten percent (10%) to thirteen percent (13%).

In addition to the free carried interest, the Government, through the Minerals Income Investment Fund (MIIF), will acquire an additional six percent (6%) in the mining operation, as well as a 3.06% in the Company’s parent entity, which is listed on the Australian and London Stocks Exchange.

Mr Jinapor said the Company will, also, pay one percent (1%) of its revenue into a Community Development Fund, to be utilised for the development of communities impacted by their operations, and will work to establish a chemical plant for the processing of lithium.

Mr Jinapor stated that these terms gave the government and the people of Ghana greater value in the mining of the minerals.

After the minister’s address through the ministry of information platform with the press, some Ghanaians have registered their displeasure with the lease and its terms and conditions.

Some Ghanaians who have registered displeasure about the lease include the former Chief Justice, director of research Mr Kwakye at the Institute of Economic Affairs and Mr. Samuel Okudzeto Ablakwa.

Justice Sophia Akufo has bemoaned the lease saying “it is not acceptable and should not be ratified by parliament.”

She urged Parliament not to ratify the deal for it will temporarily change the country and deprive the country of the full benefits of the lithium mineral.

Dr. John Kwabena Kwakye also stated the President’s goal of “Ghana beyond aid” will be rendered futile if we continue to give out the state’s natural resources cheaply

The member of parliament for North Tongu, Mr Samuel Okudzeto Ablakwa is among the growing number of Ghanaians who disagree with the lease and its terms.

He mentions that this lease does not have the best interest of Ghanaians within it by stating “To me, it’s nothing new, I raised this matter some 20 or more years ago.”