Bishop Sam Owusu, the United Nations Peace Ambassador, has also stated that the lithium arrangement made by the government of Ghana cannot be characterized as a fair bargain under any circumstances.
According to him, Ghana has learnt nothing from previous contracts inked in the extractive industry, which he believes have not benefited the country.
“Lithium is the new order, that is what is going to determine most economies in the world. How on earth can our government draft such a contract which obviously will not benefit us. Our leaders have not learned from past mining contracts which have not benefited us,” he told journalists.
Barari DV Ghana Limited, a subsidiary of Atlantic Lithium Limited, was given the nation’s first lithium mining lease, allowing it to begin building and mining activities in the Central area.
The 15-year lease includes improved conditions designed to maximize Ghana’s revenues from its lithium deposits. This includes a 10% royalty rate, enhanced state participation, and domestic value addition criteria.
During the agreement, Minister of Lands and Natural Resources Samuel Abdulai Jinapor remarked that the government determined lithium should not be treated the same as other minerals. As a result, before awarding the mining license, a specific policy was established and authorized by the cabinet.
The Minister stated that the government recognizes the negative effects of mining and is dedicated to ensuring that communities and Ghanaians benefit from the country’s mineral resources. He asked the corporation to follow the rules and perform ecologically responsible mining.
The state’s free carried interest is increased from 10% to 13% under the new lithium policy. Furthermore, the government would purchase a further 6% of the mining operation and 3.06% of the parent business listed in Australia and London through the Minerals Income Investment Fund.
The firm would also be required to float on the Ghana Stock Exchange in order to attract local investment and to provide 1% of its earnings to community development funds in afflicted communities.
The lease compels the business to build a local chemical facility for lithium processing or to supply any lithium produced to third-party processing companies in Ghana. This is intended to promote job generation and local value addition.
The Ewoyaa deposit, which was found in 2017, features high-quality lithium deposits. Lithium is a critical mineral for lithium-ion batteries, which will replace fossil fuels in the worldwide green energy transition.
Ghana is working to maximize state income and local development advantages from its undiscovered lithium deposits.
The improved lease demonstrates an endeavor to strategically exploit the mineral for national advancement.