Ghana News

Lithium contract best for Ghana – Minerals Commission


The Minerals Commission has asserted that the lithium deal between the government of Ghana and Barari DV Ghana Limited is in the best interest of the nation.

In a press statement issued on Monday, December 4, the Commission emphasised that the government thoroughly examined all available options before entering into the agreement.

The statement underscored that several concerns raised about the deal are out of ignorance, suggesting that critics may not have thoroughly read the contract agreement.

The Minerals Commission reaffirms that the deal is a well-considered decision beneficial to the country.

“For the avoidance of doubt, the mining lease was granted for 15 years to Barari, which is the subsidiary of Atlantic Lithium Limited, an Australian company listed on the Australian Securities Exchange (ASX) and also on 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.”

“The Commission notes in spite of the publication of the lease which is now widely available to the general public, it has become increasingly clear that the commentators have not read the agreement in its entirety and as result many of concerns are based on assumptions that are inaccurate and assertions that are not supported by facts or any data.”

The mining lease, 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, covers an area of 42.63 km² in and around Ewoyaa in the Mfantseman Municipality of the Central Region.

The Commission noted that despite the widespread availability of the lease to the general public, critics have not fully read the agreement, leading to concerns based on inaccurate assumptions and unsupported assertions.

Key stakeholders, including the Institute of Economic Affairs (IEA) and former Chief Justice Sophia Akufo, have criticised the contract as colonial and Guggisberg-type, respectively. These concerns stem from a mining agreement signed on October 20, 2023, between Ghana and Barari DV Ghana Limited.

The $250-million project, located in Ewoyaa, Mfantseman Municipality in the Central Region, is set to commence production by 2025.

The deal includes a 10% royalty and 13% free carried interest by the state, surpassing the existing 5% and 10%, respectively, for other mining agreements.

Barari DV Ghana Limited is also required to contribute 1% of its revenue to a community development fund for the upliftment of the mining area. While some, including statesman and business executive Sir Sam Jonah, have praised the government for securing better fiscal terms, sceptics, especially the IEA, remain cautious about the agreement.

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