lithium wont be exported in its raw state- Samuel A. Jinapor

The Minister for Lands and Natural Resources, Hon Samuel A. Jinapor, has reassured the public that the government will not permit the export of raw lithium. To ensure this, he explained that the lithium agreement with Barari DV Ghana Limited incorporates a clause emphasizing the local retention of a significant portion of the mining value chain.

During a Press Briefing on Ghana’s First Lithium Contract, Terms, Benefits, and the Way Forward on December 7, 2023, Hon Jinapor emphasized that the Lithium Mining Lease includes establishing a refinery and providing lithium by-products to local industries. He stated that Processing lithium locally is in the state’s best interest.

The Minister outlined key advantages expected from the Lithium deal, revealing that Ghana will receive 10% in royalties, marking one of the highest percentages in the country’s mineral exploration history. Additionally, the government has secured a 19% state participation in Barari DV Limited, with plans to increase it to 30% by the end of the contract.

“We have already secured 19 percent state participation in this mining company with the requirement to scale it up to a minimum of Ghanaian participation through listing on the Ghana Stock Exchange for shares to be made available to Ghanaians and Ghanaian entities,” affirmed Hon. Jinapor.

He stressed that the lithium contract serves the ultimate interest of all Ghanaians. Mr. Martin Ayisi, CEO of the Minerals Commission, noted that criticism of the deal was based on misunderstandings, emphasizing that the agreement included a $250 million project starting production in 2025. The deal offers a 10% royalty and a 13% free carried interest by the state, surpassing existing percentages in other mining agreements.

Mr. Ayisi highlighted that Barari DV Ghana Limited is also obligated to contribute 1% of its revenue to a community development fund for the upliftment of the mining area. Mr. Edward NanaYaw Koranteng, CEO of Minerals Income Investment Fund (MIIF), outlined financial benefits, citing a 31% gain in MIIF’s planned investment in the lithium deal.