The Director of Research at the Institute of Economic Affairs (IEA), Dr. John Kwakye, has urged government to exercise caution and prioritize securing a favorable deal for Ghanaians in the recently signed lithium lease.
Dr. Kwakye emphasized that until a mutually beneficial arrangement is achieved, it is advisable to leave the lithium resource untouched in the ground.
“Why is the Minister and his bosses rushing with the lithium lease? We want enough time to get the best lease for Ghana. Until then, the lithium can stay underground and the Minister can exit office,” he wrote on his X platform while reacting to a comment by the Minister of Lands and Natural Resources Samuel Abu Jinapor who assured Ghanaians that the government would not allow the export of lithium in its raw state.
In a statement on his X platform, Dr. Kwakye questioned the rush exhibited by the Minister of Lands and Natural Resources, Samuel Abu Jinapor, and his superiors in pursuing the lithium lease.
He emphasized the need for ample time to negotiate the best lease terms for Ghana. Dr. Kwakye suggested that the lithium resource could remain underground until a satisfactory agreement is reached, even if it means the Minister exiting office.
“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.”
Minister Jinapor had assured the public that the government would not permit the export of raw lithium, highlighting the inclusion of clauses in the agreement with Barari DV Ghana Limited to retain a significant portion of the mining value chain within the country.
These provisions include the establishment of a refinery and supplying lithium by-products to local industries.
Addressing a press briefing on the lithium contract, Minister Jinapor outlined several advantages, including a 10 percent royalty, one of the highest in the country’s mineral exploration history.
The government also secured a 19 percent state participation in Barari DV Limited, expected to increase to 30 percent by the contract’s end.
The Chief Executive Officer for Minerals Commission, Martin Ayisi, attributed criticism of the deal to a lack of thorough reading of the agreement. He clarified that concerns raised were based on inaccurate assumptions and unsupported assertions. Ayisi highlighted the $250 million project’s location in Ewoyaa, Central Region, with production set to commence by 2025.
The deal includes a 10 percent royalty and a 13 percent free carried interest by the state, exceeding existing percentages in other mining agreements. Additionally, Barari DV Ghana Limited is required to contribute 1 percent of its revenue to a community development fund for the upliftment of the mining area.
Chief Executive for Minerals Income Investment Fund (MIIF), Mr. Edward NanaYaw Koranteng, has underscored several financial benefits for Ghanaians, noting a 31% gain in MIIF’s planned investment in the lithium deal.