The Minister of Lands and Natural Resources, Samuel Abu Jinapor, has defended the Ghana-Barari DV lithium agreement, revealing the key components of the deal that makes it unprecedented, Ghanaian-centered and an improvement on previous agreements.
Speaking at a forum organised by some Civil Society Organisations (CSOs) on the agreement on Friday, Mr Jinapor took time to disclose key details about the deal, dispelling the “false narratives and demystified the myths” around it which have generated since the deal was signed.
He forcefully advanced the viewpoint that in the history of the country, never had any government signed a more profitable deal which had the interest of Ghanaians at its core.
The minister explained the various clauses within the agreement, asserting his conviction that they signified a departure from the “historically exploitative colonial approach to Ghana’s mineral resources.”
He pointed out that the clauses aligned with the government’s strategic direction, emphasizing value addition in the utilisation of the country’s mineral wealth.
The Lands Minister mentioned the listing of Bavari DV on the Ghana Stock Exchange which allows for potential Ghanaian investment through the purchasing of shares, the obligation for local participation and the value addition clauses as key components of the deal that contrary to some assumptions, ensured that Ghanaian interests reign supreme in the exploitation of the lithium ore.
“This is the first time that by law, we have made provisions that this company will have to list on the Ghanaian Stock Exchange. They are also required to have a minimum of 30 per cent Ghanaian participation. We already have 19 per cent so we have 11 per cent and it could be more. This arrangement is the number one factor which in my mind jettisons the colonial term of mining.
“The second one is value addition. We’ve always had export of raw materials but this is the first time we have signed a mining lease with clauses which states that they will have to retain a significant proportion of the value chain by establishing a technical plant and refinery here in Ghana. It has never happened before,” he said.
Armed with credible and relevant information from other countries, Mr Jinapor maintained that the lease agreement was the best the country could have negotiated.
“Australia accounts for 52 per cent of global lithium production. Chile accounts for 25 per cent. Zimbabwe is the largest lithium producing country in Africa and their grades are better than ours but when it comes to royalties, Australia pegs it at five per cent, Mali pegs its six per cent and Zimbabwe at five per cent. The Ghana government has negotiated a 10 per cent benefit which is twice Zimbabwe and Australia and four per cent more than Mali,” he said.
He also refuted accusations that the deal had been shrouded in secrecy, explaining that transparency had been the hallmark of the deal and that the signing ceremony which was done with active media presence was enough indication of the commitment of the government to the tenets of transparency and accountability.
While welcoming criticism and feedback from the public, Mr Jinapor urged critics “to propose alternative and better deals” instead of “outlandishly rubbishing the one signed by his outfit.”
He assured Ghanaians that the government would continue to pursue strategies, policies and commitments that served and protected the best interest of the country.
The Ministry of Lands and Natural Resources in October, signed the first-ever Lithium Lease Agreement with Lithium Atlantic, an Australian mining firm, for mining of the mineral at Ewoyaa in the Central Region.
BY TIMES REPORTER
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