The Minerals Commission says the Lithium deal between the government of Ghana and Barari DV Ghana Limited is in the best interest of Ghana.
In an official release issued by Martin Kwaku Ayisi, the Chief Executive Officer of the Commission on Monday, December 4, said the Government thoroughly examined all available options before entering into the agreement.
The Commission said some concerns raised about the deal are rooted in ignorance, suggesting that critics may not have thoroughly read the agreement.
The Commission reaffirmed that the deal is a well-considered decision beneficial to the country.
“For the avoidance of doubt, the mining lease was granted for 15 years to Barari, which is the subsidiary of Atlantic Lithium Limited, an Australian company listed on the Australian Securities Exchange (ASX) and also on the Alternative Investment Market (AIM) of the London Stock Exchange,” the statement said.
The lease covers an area of 42.63 Km2 in and around Ewoyaa in the Mfantseman Municipality of the Central Region.
“The Commission notes in spite of the publication of the lease which is now widely available to the public, it has become increasingly clear that the commentators have not read the agreement in its entirety and as result many of the concerns are based on assumptions that are inaccurate and assertions that are not supported by facts or any data.”
Meanwhile, some civil society organisations and key stakeholders, including the Institute of Economic Affairs (lEA) and former Chief Justice Sophia Akufo, have criticised the Lithium contract as colonial and Guggisberg-type, respectively.
Those concerns stemmed from a mining agreement signed on October 20, 2023, between Ghana and Barari DV Ghana Limited.
The $250-million project, located in Ewoyaa, Mfantseman Municipality in the Central Region, is set to commence production by 2025.
The deal includes a 10% royalty and 13% free interest carried by the state, surpassing the existing 5% and 10%, respectively, for other mining agreements.
Barari DV Ghana Limited is also required to contribute 1% of its revenue to a Community Development Fund for the upliftment of the mining area.
While some key influencers, including Sir Sam Jonah, a statement and business executive have lauded the government for securing better fiscal terms.
On October 19,2023, Mr Samuel Abu Jinapor, the Minister of Lands and Natural Resources at a brief ceremony held at the Ministry signed the first mining lease for the exploitation of Lithium in Ghana and the publication of the lease on the website of the Commission.
The mining lease was granted for 15 years to Barari, which is the subsidiary of Atlantic Lithium Limited, an Australian company listed on the Australian Securities Exchange and on the Alternative Investment Market of the London Stock Exchange.
The lease covers an area of 42.63 Km2 in and around Ewoyaa in the Mfantseman Municipality of the Central Region.
The Commission notes despite the publication of the lease which is now widely available to the public, it has become increasingly clear that the commentators had not read the agreement in its entirety and as result many of concerns are based on assumptions that were inaccurate and assertions that were not supported by facts or any data.
Recognizing these concerns raised, the Commission scheduled a press conference on Thursday, 7th December 2023 to further explain the nature of the contract and procedures, including the next steps after the grant of the lease.
The Commission, thus, assured the public of its utmost commitment to promote transparency and accountability in dealing with any mineral resources that rightly belonged to the people.
The Commission further assures the public that the lease was signed in the best interest of Ghana.
GNA