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Lack of due diligence in Ghana’s Lithium deal with Barari DV – UTAG-UG

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The University Teachers Association of Ghana, University of Ghana Branch (UTAG-UG), has urged Parliament to conduct a thorough examination of the lithium deal between Ghana and Barari DV Ghana Limited upon its presentation to the House for ratification.

Various civil society organizations and entities have already voiced concerns, advocating for a reevaluation of the agreement.

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In its statement, the teacher union accuses the government of neglecting the essential scoping study, which should assess the economic advantages of downstream lithium concentrate conversion within Ghana.

“A scoping study is expected to be undertaken to evaluate the economic benefits of the downstream conversion of the concentrate in Ghana, predicated on which a chemical plant is expected to be established by the company for refinery of the concentrate in Ghana.”

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“It also appears that the deal was rushed and signed without proper due diligence and consultations and sensitization of the local community and Ghanaians as a whole. Hence, there are suspicions, local agitations, and civil society criticism of the deal as being inimical to the development of the country.”

It suggests that the government hastily entered into an agreement with Barari DV.

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The statement reads, “A scoping study is expected to be undertaken to evaluate the economic benefits of the downstream conversion of the concentrate in Ghana, predicated on which a chemical plant is expected to be established by the company for the refinery of the concentrate in Ghana.”

The union raises concerns about the rushed and inadequately scrutinized nature of the deal, asserting that proper due diligence, consultations, and sensitization of local communities and Ghanaians at large were lacking. This has led to suspicions, local opposition, and criticism from civil society, with doubts about the deal’s contribution to the country’s development.

UTAG-UG also calls for a deceleration of mining processes in the country and insists on engaging stakeholders before finalizing any mining lease or agreement.

“We call on the government to slow down the pace of the mining process and commence another round of sincere and detailed nationwide public consultations with experts, civil society, chiefs, people and community leaders, with a view to ensuring that Ghana benefits from her lithium.”

“We call on the government to slow down the pace of the mining process and commence another round of sincere and detailed nationwide public consultations with experts, civil society, chiefs, people and community leaders, with a view to ensuring that Ghana benefits from her lithium.

“We add our voice in calling on Parliament (as representatives of the good people of Ghana) to assert its role in rigorously scrutinizing whatever deal is laid before it, in the interest of Ghana.”

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