Political analyst, Yaw Asani Tanoh, is displeased with government’s decision to issue a fifteen-year mining lease to Barari DV Ghana Limited, a subsidiary of Atlantic Lithium Limited, enabling them to commence lithium mining in Ewoyaa, within the Mfantseman Municipality of the Central Region.
In an interview on Neat FM, Yaw Asani Tanoh expressed his concern while noting that government could have found a number of local businessmen and companies to collude and ensure the mining of the mineral resource.
He noted that the likes of Ghanaian Businessman Ibrahim Mahama, Despite Group Media could have been engaged to pull their resources to carry out this intiative.
“I pray that the media will take it up to scrutinize the lithium agreement. If there is a need to stop, then we stop it.
Just yesterday we discovered lithium, we have gone to give it to Australia. Couldn’t we have said this lithium, we know the value of it, because in the whole world, the document shows us that they will set up a lithium value addition factory here. If that is done, it will mean that in the whole world, Ghana is the third country that has discovered Lithium.
“So why didn’t we put businessmen in Ghana together, like Ibrahim Mahama, he is into mining, Despite Group of Companies, other big sharks, and say we are putting this into your hands. Find partners and put in place the necessary factories to ensure we add value to the lithium.”
For Mr Tanoh, foreign companies do not have the country’s welfare at heart compared to locals, who have shown their generosity to individuals affected by the Akosombo dam spillage.
“You have gone to give it to Australia, when the Akosombo Dam spillage flooded communities, where is Australia. I just can’t think far. We are belittling ourselves indicating that unless a foreigner comes to do things for us, especially mining.
These foreign companies at the end of the day go to Ibrahim Mahama and the rest to lease trucks, bulldozer etc or even sell come contract areas to him. So what is the point in seeding our mineral resources that we can mine by ourselves, the monies remaining here for development but give it to somebody else,” he stated.
He has also called on the media to thoroughly probe the terms of agreement between the government and Barari DV Ghana Limited that has been permitted to engage in lithium production in the country.
Minister for Lands and Natural Resources, Samuel Abu Jinapor, has emphasized that the agreed terms provide the Government and the people of Ghana with greater value in the mining of lithium.
He highlighted key aspects of the lease, including:
- An increased royalty rate from the standard 5% to 10%.
A royalty rate refers to the percentage of revenue or profit that one party (the licensee) agrees to pay to another party (the licensor) in exchange for the right to use a specific asset or intellectual property.
- An increase in the state’s free-carried interest in the mining operation from 10% to 13%.
Free-carried interest refers to a portion of ownership or equity interest in an investment that an individual or entity holds without having to make any financial contributions or bear any of the associated risks.
- The acquisition of an additional 6% in the mining operation by the government through the Minerals Income Investment Fund (MIIF).
- The government will also secure a 3.06% stake in the company’s parent entity, listed on the Australian and London Stock Exchanges.
- The requirement for the company to list on the Ghana Stock Exchange to allow Ghanaian entities, such as pension funds and individuals, to participate in the business.
- The commitment of the company to contribute 1% of its revenue to a Community Development Fund, which will be used for the development of communities affected by its operations.
- The company’s obligation is to establish a chemical plant for lithium processing. If the company is unable to establish such a plant, it will provide its lithium to third-party chemical plants in the country, promoting job creation and development in mining communities and across Ghana.
After extensive consultations and approval by Cabinet, a policy for the exploitation and management of green minerals, including lithium, was endorsed by Parliament and integrated into the mining lease issued to the company.
