New Patriotic Party (NPP) Member of Parliament (MP) for Suame and former Majority Leader of Parliament, Mr Osei Kyei-Mensah-Bonsu, has voiced concerns over the delay in the passage of Ghana’s lithium agreement, citing the risk of Ghana becoming a stranded asset country.
A stranded assets country refers to a country whose valuable resources or investments, particularly in the energy or natural resources sector, become obsolete or lose value due to changes in market conditions, regulations, or technological advancements.
As global demand for the mineral surges, the Suame Member of Parliament has called for an expedited process to see the deal materialise.
Mr. Osei Kyei-Mensah-Bonsu made these remarks on Tuesday, September 3, 2024, during a stakeholder forum in Parliament.
Mr Kyei-Mensah cautioned that the window of opportunity to maximise the benefits from lithium, which is essential in the production of batteries for electric vehicles and renewable energy storage systems, might be shorter than anticipated.
He mentioned that “We must declare in our minds that if we don’t take action, we may experience stranded assets in the not-too-distant future. As far as lithium is concerned, we should not think that it is an eternal resource.”
“What is happening now, pretty soon, if we are not careful, it may fall into the category of stranded assets. That is not to say that we should not approach it with some degree of caution,” he added.
The day’s stakeholder forum was organised by the Lands and Natural Resources Committee of Parliament. It had stakeholders coming together to deliberate decisively on the subject.
About the Lithium deal:
In October 2023, Ghana signed its first lithium mining lease with Barari DV Ghana Ltd., a subsidiary of Atlantic Lithium, for the Ewoyaa lithium project.
The deal aims to tap into global demand for lithium, crucial for renewable energy and battery technologies.
The agreement includes a government take of 58% on profits, a 13% free carried interest, and a 6% stake in the Minerals Income Investment Fund (MIIF).
Additionally, 1% of revenue is dedicated to a Community Development Fund to benefit local communities.
The deal is under parliamentary review and has generated public debate, with critics questioning its transparency and raising concerns about its potentially exploitative nature.