A member of the Council of State, Sam Okudzeto is advising Ghanaians to join in and intensify calls in demanding better terms in the government’s current lithium deal.
In October 2023, the government of Ghana went into an agreement with Barari BV, an Australian mining firm for the mining of lithium.
But Mr. Okudzeto says the deal in its current state is not in the best interest of the country. His comments follow many such assertions on the deal.
“This lithium agreement is not in the best interest of Ghana. That’s my view. And if you all agree with me, let’s all make a statement in support of the IEA to say that we do not think that this agreement is in the interest of Ghana and that we have to relook this matter. I don’t want to condemn the MPs, but we will caution them and advise them to do what is right and what is in the interest of Ghana,” he said at an IEA event.
Following the finalization of the deal in October, experts have criticized the terms agreed on by the government, with many not happy about the long duration the foreign mining company has been given to do its business. The terms have largely been touted as an overly generous one.
Mr. Okudzeto has therefore recommended a review of the deal in order that the country stands to gain more than the current deal indicates.
But, defending the nature of the agreement, government said the deal is set to create jobs and attract the needed investments.
Meanwhile, the Minister for Lands and Natural Resources, Samuel Abu Jinapor has lauded government for the deal, stating that it is the best mining lease for the country.
“Green minerals, lithium, energy transition, and all of that, our president and his government have insisted that we treat these minerals differently from other minerals in the past, which is why we have come up with a policy on the management, exploitation, and utilization of the green minerals of our country, including lithium,” he added.
The Ministry of Lands and Natural Resources led by its head, Mr. Jinapor, on the October 19, 2023, signed a lease agreement with Lithium Atlantic, an Australian mining firm to start mining lithium at Ewoyaa in the Central Region. This deal is the first of its kind.
The deal is such that government holds a total of 19% interest in the local company and 3.06% in the foreign holding company.
Furthermore, the agreement obliges the company to construct a chemical plant at its point of operation four months after signing the agreement.
The foreign company is investing $250 million into the project and is expecting its first production in 2025.
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