Lecturers of the University of Ghana (UG) have added their voices to the list of individuals and entities who have rejected the lithium exploration deal reached by the government of Ghana and Barari DV Ghana Limited.
In a statement issued by the University Teachers Association of Ghana (UTAG) – UG branch, the lecturers indicated that the lithium deal reached is not in the interest of Ghana.
They added that the only acceptable deal is one that makes the people of Ghana majority owners of the lithium that would be explored.
“Given the many uses of this metal and its immediate potential, to create a new economic ecosystem with several appendages in downstream processes in the value chain that could create high income jobs and contribute significantly towards our economic emancipation, one would have thought that this metal will not suffer the same fate as every other mineral deposit discovered in Ghana has.
“On the contrary, however, the lease agreement signed between the Government of Ghana and Barari DV Ghana Limited on the 20th of October. 2023, puts Ghana’s total ownership stake at a percentage that many have described as inadequate and unfavourable. Data from Atlantic Lithium shows that when the mine is in operation, the ownership structure will be as follows: Atlantic Lithium, 40.5%; Piedmont Lithium, 40.5%; Minerals Income Investment Fund, 6%; while Government of Ghana will own 13%. A further 10% of revenue will be paid as royalties and 1% as a Growth and Sustainability Levy. It is important to emphasize that these figures are revenue dependent,” part of their statement read.
They added, “The deal also allows the sale of spodumene concentrate (enriched to 6%, SC6) to Piedmont Lithium. The desire to sell the mineral in its raw state (spodumene concentrate) just like all minerals extracted in Ghana, is most regrettable.”
Background:
The Minister of Lands and Natural Resources, Samuel Abu Jinapor, signed the first-ever lease for the exploitation of lithium in the country on October 19, 2023.
This followed the cabinet’s approval of the Green Minerals Policy, which makes it mandatory for prospective holders of leases for lithium and other green minerals to establish a refinery for processing the resource.
Since the granting of the lithium mining lease, some CSOs, individuals and institutions have criticised the deal, describing it as bad for the country.
There have also been calls to grant mining leases through a tender process.
Jinapor, however, defended the government’s position at a state-organised press conference last Thursday.
He was supported by the Chief Executive Officer of the Minerals Commission, Martin Ayisi, and that of the Minerals Income Investment Fund (MIIF), Edward Nana Yaw Koranteng.
Addressing the press conference on December 7, 2023, the lands minister said: “Suffice for me to point out that it is the first time in the history of our country that we have successfully negotiated for 10% royalties for any mineral which is one of the highest for the exploration of any mineral across the world.”
He added, “We have already secured 19% 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.
“What this simply means is that when it is all over, Barari DV Limited, the holder of this mineral right of lithium, Ghanaian and state participation will be 30%, and foreign participation will be a maximum of 70% and this has never happened in the history of our country in respect of any mineral,” he emphasized.
Despite all the backlash that this deal has received, Abu Jinapor said it has good prospects for the country.
“And for the first time in the history of our country, a mineral lease contains provision for the establishment of a refinery and that is value addition and appreciation and this is the first time,” he said.
Read the full statement below:
Source: ghanaweb.com
