The United Nations Peace Ambassador Bishop Sam Owusu has also indicated that the lithium agreement signed by the government of Ghana cannot be described as a good deal no matter what.
To him, Ghana has not learned anything from the past contracts signed in the extractive sector which, in his view, have not yielded any benefits to 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.
Background
Government granted the nation’s first lithium mining lease to Barari DV Ghana Limited, a subsidiary of Atlantic Lithium Limited, to commence construction and mining operations in the Central region.
The 15-year lease incorporates enhanced terms intended to optimise Ghana’s earnings from its lithium resources. This includes a 10% royalty rate, increased state participation and requirements for domestic value addition.
Minister of Lands and Natural Resources, Samuel Abdulai Jinapor, during the agreement stated that the government decided lithium should not be treated the same as other minerals. As such, a special policy was developed and cabinet-approved before issuing the mining lease.
The Minister said the government recognises mining’s impacts and was committed to ensuring communities and Ghanaians benefit from the country’s mineral wealth. He urged the company to adhere to laws and conduct sustainable, environmentally responsible mining.
The new lithium policy raises the state’s free carried interest from 10% to 13%. Additionally, the government, through the Minerals Income Investment Fund, would acquire a further 6% of the mining operation and 3.06% of the parent company listed in Australia and London.
The company would also be mandated to list on the Ghana Stock Exchange for local investment participation and a stipulated 1% revenue payment into community development funds for impacted areas.
Significantly, the lease requires the company to construct a domestic chemical plant for lithium processing or supply any lithium mined to third-party processing plants in Ghana. This aims to foster job creation and local value addition.
The Ewoyaa deposit was discovered in 2017 and has high-grade lithium reserves. Lithium is a key mineral for lithium-ion batteries, replacing fossil fuels for global green energy transition.
Ghana is undertaking initiatives to derive maximum state revenue and local development benefits from its untapped lithium resources.
The enhanced lease represents efforts to strategically leverage the mineral for national progress
