Director of Research at the Institute of Economic Affairs (IEA), Dr. John Kwakye, has indicated that Ghana’s unexploited mineral resources are valued at over US$10 trillion, as per research conducted by the Central Intelligence Agency (CIA) of the United States.
He emphasized that this substantial untapped wealth underscores the importance for Ghana to assert direct control over the nation’s mineral resources.
In an interaction with the media, he said, “We believe that Ghana is not poor, we are rich. CIA has a database on some of minerals, the tonnage of our natural resources underground and if you take them, you add them and multiply by the world prices, we came up with a figure that is more than $10 trillion.”
The IEA is therefore advocating for adequate resourcing of the Ghana Geological Survey Authority (GGSA) to facilitate comprehensive mapping of the country’s mineral resources, ensuring effective utilization.
The GGSA is tasked with conducting geological surveys, mapping, and providing geoscientific information to the public and private sectors.
“Our geological survey, why can’t we resource them on an annual basis? I expect that the budget will have a line item that says that the Geological Survey takes so much. Let’s resource them so that they can do the mapping of the mineral data for us so that we don’t have to rely on a foreign company coming in and saying because I brought in my own capital, you have to accept these terms.”
“So we can find the money. In fact, we can even use part of our oil money, the funds that we have created the stabilisation fund, the heritage fund. We can dip into it and use it,” he stated.
This comes at a time when Ghana has signed a lithium deal with Barari DV Ghana Limited, one that has been condemned by the IEA.
The think-tank argues that the terms and conditions do not inure to the benefit of Ghanaians, hence must not be ratified by Parliament when the agreement is presented by the Lands Minister, Samuel Abu Jinapor.
The mining lease, granted for 15 years to Barari, a subsidiary of Atlantic Lithium Limited, an Australian company listed on the Australian Securities Exchange (ASX) and the Alternative Investment Market (AIM) of the London Stock Exchange, covers an area of 42.63 km² in and around Ewoyaa in the Mfantseman Municipality of the Central Region.
The $250-million project, located in Ewoyaa, Mfantseman Municipality in the Central Region, is set to commence production by 2025.
The deal includes a 10% royalty and 13% free carried interest by the state, surpassing the existing 5% and 10%, respectively, for other mining agreements.
Barari DV Ghana Limited is also required to contribute 1% of its revenue to a community development fund for the upliftment of the mining area.
The Lands Minister notes that the lease demands the construction of a mining refinery in Ghana for the processing of lithium by the Australian company.