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The Minority in Parliament is requesting that the government present the specifics of the lithium mining agreement with Barari DV to the house for review and approval.
The Institute of Economic Affairs (IEA) and former Chief Justice Sophia Akufo, among other influential parties, have denounced the contract as colonial and Guggisberg-style, respectively.
These issues are related to a mining contract that Ghana and Barari DV Ghana Limited signed on October 20, 2023.
Production on the $250 million project is expected to start in 2025 and is situated in the Central Region’s Ewoyaa, Mfantseman Municipality.
The agreement surpasses the current 5% and 10%, respectively, for other mining agreements with a 10% royalty and a 13% free carried interest in the state.
John Jinapor, the ranking member of the Mines and Energy Committee, stated in a speech on Thursday in parliament, “I want to make it loud and clear and succinct and explicit that the agreement between the government of Ghana and Barari should be laid before Parliament without delay.”
He further noted, “And let me assure the people of Ghana that the minority will not let you down. We will scrutinize the agreement. We will not allow this agreement to be rushed through. We would seek the guidance, the involvement of civil society; we will speak to important personalities, including former Chief Justice Sophia Akuffo, who has been vocal on this lithium agreement.”
Ghanaians have been reassured by Hon. Samuel A. Jinapor, Minister of Lands and Natural Resources, that the government will not permit the export of lithium in its unprocessed form.
He explained that for this reason, the government had included a clause guaranteeing the retention of a sizable portion of the local mining value chain in the lithium agreement between it and Barari DV Ghana Limited.
Speaking at a press conference on Thursday, December 7, 2023, about Ghana’s First Lithium Contract, Terms, Benefits, and the Way Ahead, Hon. Jinapor emphasized that the state’s decision to process lithium locally was best served by the Lithium Mining Lease, which includes provisions for the establishment of a refinery and the supply of lithium by-products to regional industries.
The Minister listed the major benefits anticipated from the Lithium deal’s implementation, revealing that Ghana will receive 10% in royalties upon contract execution—among the highest amounts ever paid to the nation for mineral exploration.
He continued by saying that the government had also managed to secure 19% state participation in Barari DV Limited, with plans to increase that percentage to 30% by the contract’s conclusion.
“We have already secured 19 percent state participation in this mining company with the requirement to scale it up to a minimum of Ghanaian participation through listing on the Ghana Stock Exchange for shares to be made available to Ghanaians and Ghanaian entities”.
Hon. Jinapor affirmed that the lithium contract is in the ultimate interest of all Ghanaians.
Source: Ghanatodayonline.com
