Minister for Lands and Natural Resources, Samuel Abu Jinapor, is content that Ghana, for the first time in its history, has managed to secure 10 percent royalties from its mining lease.
The lithium mining lease signed between Ghana and Barari DV Ghana Limited on October 20, 2023, is set to provide the country with 10 percent royalties once production commences.
Addressing the press today, the Lands Minister stated that the lithium mining lease is distinct from all the mining leases Ghana has appended its signature to.
“Let me state that this lease, differs from all previous mining leases in many respects. Suffice for me to point out that it is the first time in the history of our country that we have successfully negotiated for 10% royalties for any mineral, which is one of the highest for exploitation of any mineral across the world,” he said.
He further listed more perks the country stands to benefit from the lease yet to be ratified by Parliament.
“We have already secured a 19% state participation in this mining company with a requirement to scale it up to a minimum of 30% Ghanaian participation through listing on the Ghanaian Stock Exchange for shares to be made to Ghanaians and Ghanaian entities,” he added.
The Lands Minister continued that the lease demands the construction of a mining refinery in Ghana for the processing of lithium.
Meanwhile, Samuel Abu Jinapor, has stated that his ministry will submit Ghana’s lithium mining lease with Barari DV Ghana Limited to Parliament for ratification.
Mr. Jinapor emphasized that the mining lease requires parliamentary ratification, and failure to do so would result in the nullification of the lease.
“There has been an issue of ratification of the lease. It has been raised by several people. This has never been lost on us as this is expressly provided for the mining lease granted to Barari DV Ghana Limited. Specifically, Clause 1E of the lease states ‘the mining lease is subject to ratification by Parliament in accordance with Article 2681 of the constitution and section 54 of Act 703’. ‘Upon execution of this mining lease, the Minister shall cause the mining lease to be laid in Parliament for ratification’.”
By the very term of the lease, therefore, ratification by Parliament is a condition precedent, he said, “as unratified mining lease confers no enforceable right, and the government has always been mindful of this decision.”
“The mining lease in question will be laid before Parliament for ratification,” he added.
Prior to this, former Chief Justice of Ghana, Sophia Akuffo, stated that the recently signed lithium lease by the government is incomplete without parliamentary ratification.
From her legal perspective, this specific transaction should have been submitted to Parliament for approval.
“My legal view is that it is a transaction that requires ratification, it is not complete. This is a document, it is signed and sealed and delivered but it is a deal that has to be ratified by a named authority, that is the Parliament of the Republic of Ghana,” she said while speaking as a Distinguished Scholar of the Institute of Economic Affairs (IEA) in Accra on Tuesday, November 28.