Kwesi Pratt Jnr. has raised reservations about the lithium deal between the Government of Ghana and Barari DV Ltd.
Following the discovery of lithium in the country, the government has entered into a contract with Barari DV Ltd, a subsidiary of Atlantic Lithium Ltd, to mine the mineral giving Ghana 10% of royalties from the deal and with the nation further owning 19 percent shares in the company.
“This lease differs from all previous mining leases in many respects. It is the first time in the history of our country that we have successfully negotiated for 10 percent royalties for any mineral, which is one of the highest for exploitation of any mineral across the globe,” Samuel Abu Jinapor, Minister for Lands and Natural Resources, said at a Meet-the-Press series organised by the Ministry of Information.
“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,” the Minister expounded.
Although this deal, according to the Minister, is the best ever in the country’s extractive business, Kwesi Pratt is least enthused about the terms of the agreement.
The seasoned Journalist raised some fundamental questions about the deal saying up until Ghana’s new discovery, only 20 countries in the world were listed to have this mineral deposit and though Ghana now adds to the list, “when you take the 21 countries, the quantity of their deposits, Ghana’s is the least among the 21 countries. That is a factor you cannot ignore”.
Discussing the prospects of this mineral in Ghana, Mr. Pratt asked; “Now, given this situation, the most important question is should we mine it now or we shouldn’t? That’s a crucial question…Should we mine it now or should we wait until certain conditions are mature for mining?”
He argued that “it is important for us to also understand most of our minerals including the lithium is a non-renewable resource. What this non-renewable resource means is that, for instance, if you have gold in your land and you mine it, it is gone forever. It will not regerminate. When you refine oil and gas and sell it, it won’t return to you again; non-renewable resource”.
“So, when you check the intensity that we are mining these natural resources and send them abroad, we have to remember that a time will come, maybe 50 years from now, maybe 100 years from now; these resources will not be available for extraction and export again. It is gone forever and won’t return; that’s an important consideration when we are discussing the mining of our mineral resources”, he also stressed while delivering his submissions on Peace FM’s morning show “Kokrokoo”.
Source: peacefmonline.com
