Minister for Lands and Natural Resources, Samuel Abu Jinapor, has announced a groundbreaking lithium mining lease, setting a new precedent in the country’s mining sector.
This lease, granted to Barari DV Ghana Limited, a subsidiary of Atlantic Lithium Limited, marks a significant shift from previous agreements.
Mr. Jinapor highlighted several key aspects of the lease, including an impressive 10% royalty rate, 19% state participation, and a substantial 30% involvement of Ghanaian citizens and companies.
A standout feature of this agreement is the inclusion of a clause that mandates the establishment of a lithium refinery right here in Ghana, a move seen as maximizing the benefits of the project for the nation.
The lease, spanning 15 years, allows Barari DV Ghana Limited to commence the construction and mining of lithium at Ewoyaa in the Mfantseman Municipality of the Central Region.
Covering an area of about 42.63 square kilometres, the lease grants exclusive rights to the company under the country’s mining laws.
This agreement follows comprehensive prospecting and feasibility studies by the company, coupled with extensive negotiations between the Government and Barari DV.
At a press conference on December 7, Mr. Jinapor shed light on the reasons behind the grant of the mining lease without a tender process, citing Ghana’s limited resources for exploring its natural assets.
To him, the historical lack of resources for exploration has led to dependence on private companies, such as Barari DV Limited, to undertake exploration and receive mining leases without going through the tender process.
“…And as I say Barari DV Limited got their first recognizant license as far back as August 2012,” he continued.
The Minister for Lands and Natural Resources further stated that Ghana will not export lithium in its raw state.
He therefore said there will be retention of the significant part of the value chain for lithium and the establishment of a refinery in Ghana assuring of his commitment to lay it before parliament for ratification.
“That is non-negotiable. The processes are ongoing, and once completed, the agreement will be laid before Parliament for consideration and hopefully, ratification” he said.
Meanwhile, the Minority has cautioned the government to as a matter of urgency lay the agreement between Barari DV Limited and the government before parliament.
Addressing journalists in parliament on Thursday, December, 7, the Ranking Member on the Mines and Energy Committee John Abdulai Jinapor said agreement of such nature needs parliamentary approval.
He therefore assured the Ghanaian populace of the Minority’s position to thoroughly scrutinize the agreement and engage the public in every step of the interrogation.
To him, the focus now is on lithium, which is more lucrative than gold and diamond, and the global trend is shifting towards this environmentally friendly mineral.
Additionally, he said the minority will advocate for Ghana to benefit from this resource and will oppose any terms and agreements that are not in the country’s best interest.
“And let me also caution, Barari that any attempt to commence mining without parliamentary approval would be illegal” he emphasized.
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Source: Flora Tang/ATLFMNEWS
