By Godwill Arthur-Mensah/ Elsie Appiah-Osei, GNA
Accra, Nov.12, GNA – The Minister of Lands and Natural Resources, Mr Emmanuel Armah-Kofi Buah, has laid before Parliament the re-negotiated lithium lease agreement between the Government of Ghana and Barari DV Limited for ratification in accordance with Article 268 of the 1992 Constitution.
Speaking on the floor of Parliament on Tuesday, Mr. Armah-Kofi Buah explained that the re-negotiation was necessary due to the sharp decline in global lithium prices, which have fallen from $3,000 per tonne to $630.
The Speaker of Parliament, Alban Bagbin, referred the lease agreement to Parliament’s Committee on Lands and Forestry for further scrutiny.
Mr Armah-Kofi Buah highlighted the adjustments in the agreement as follows: A revised royalty rate, VAT deferral, capital inputs and shipment facility considerations.
He emphasised that the agreement was designed to serve the best interests of host communities(Mankessim) and surrounding areas to create jobs and support livelihoods.
The Minister further explained that the royalties had been set at five percent, with a provision to increase it to 10 percent should lithium prices rise again.
The agreement, he said, had already been submitted to Cabinet for approval.
Meanwhile, the Minority Caucus, led by Mr Samuel Abu Jinapor, former Minister of Lands and Natural Resources, strongly criticised the new terms, arguing that the renegotiated deal was worse than the agreement presented under the previous NPP government in the eighth Parliament.
He noted that the earlier agreement included 13 percent carried interest, six percent equity into the Minerals and Investment Fund, 30 percent shares to be listed on the Ghana Stock Exchange, and a growth and sustainability levy.
Mr Jinapor expressed surprise that the current NDC government, which had previously opposed the lithium lease, is now seeking ratification.
Lithium remains a critical global commodity, particularly for the production of batteries used in electric vehicles and other technologies driving the green energy revolution.
Ghana’s ability to secure favorable terms in its lithium agreements is therefore seen as vital for both economic growth and environmental sustainability.
The Committee on Lands Forestry is expected to review the terms and report back to the plenary for debate and possible ratification.
GNA
Christian Akorlie