Josiah
The Minerals Commission asserts that the Lithium agreement between the Ghanaian government and Barari DV Ghana Limited serves the best interests of Ghana. In a press release issued on Monday, December 4, the Commission stated that the government thoroughly assessed available options before finalizing the agreement. The CEO, Martin Kwaku Ayisi, conveyed in the statement that numerous concerns raised about the deal appear to stem from a lack of understanding, implying that critics may not have thoroughly reviewed the agreement.
The Minerals Commission restated that the deal represents a well-considered decision that benefits the country. To clarify, the mining lease was granted for 15 years to Barari, a subsidiary of Atlantic Lithium Limited—an Australian company listed on the Australian Securities Exchange (ASX) and the Alternative Investment Market (AIM) 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.
Despite the publication of the lease, which is now widely accessible to the public, the Commission noted that commentators seem not to have read the agreement thoroughly. Consequently, many concerns are based on inaccurate assumptions and unsupported assertions.
Prominent figures, including the Institute of Economic Affairs (IEA) and former Chief Justice Sophia Akufo, have criticized the contract, characterizing it as colonial and Guggisberg-type, respectively. These concerns are related to a mining agreement signed on October 20, 2023, between Ghana and Barari DV Ghana Limited. The $250-million project, situated in Ewoyaa, Mfantseman Municipality in the Central Region, is scheduled to commence production by 2025.
The terms of the deal include a 10% royalty and 13% free carried interest by the state, surpassing the existing 5% and 10%, respectively, in other mining agreements. Additionally, Barari DV Ghana Limited is obligated to allocate 1% of its revenue to a community development fund for the enhancement of the mining area. While some, including statesman and business executive Sir Sam Jonah, have praised the government for securing improved fiscal terms, skeptics, especially the IEA, remain cautious about the agreement.
Source:Omanghana.com
