Lithium Contract Best For Ghana - Minerals Commission

The Minerals Commission says the Lithium deal between the government of Ghana and Barari DV Ghana Limited is in the best interest of Ghana.

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

The commission in the statement signed by the Chief Executive Officer, Martin Kwaku Ayisi said several concerns raised about the deal are rooted in ignorance, suggesting that critics may not have thoroughly read the agreement.

The Minerals Commission reaffirmed 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 the concerns are based on assumptions that are inaccurate and assertions that are not supported by facts or any data.”

Key stakeholders, including the Institute of Economic Affairs (lEA) 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.

Attached below is a copy of the press statement

PRESS RELEASE
RE: LITHIUM MINING LEASE BETWEEN THE GOVERNMENT OF GHANA AND
BARARI DV GHANA LIMITED

The attention of the Minerals Commission (the “Commission”) has been drawn to comments and concerns by some members of the Ghanaian public regarding the mining lease between the Government of Ghana and Barari DV Ghana Limited (the “company” or “Barari”).

This comes on the heels of the announcement by the Minister of Lands and Natural Resources, Hon. Samuel A. Jinapor at a brief ceremony on 19 October 2023 when he signed the first mining lease for the exploitation of Lithium in Ghana and the publication of the lease on the website of the Commission.

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.

Recognizing these concerns raised, the Commission has scheduled a press conference on Thursday, 7th December 2023 to further explain the nature of the contract and procedures, including the next steps after the grant of the lease.

The Commission would like to assure the public of our utmost commitment to transparency and accountability in dealing with any mineral resources that rightly belong to the people of Ghana.

The Commission further assures the public that the lease was signed in the best interest of Ghana.

SIGNED
MARTIN KWAKU AYISI
CHIEF EXECUTIVE OFFICER
MINERALS COMMISSION