The Ghana government-Berari DV deal for the latter to mine lithium in the country has faced many criticisms, both from individuals and groups, including Civil Society Organisations (CSOs).
Sophia Akuffo, a former Chief Justice who raised concerns about the lithium agreement has reiterated her stance despite government’s insistence that the deal was well thought through and one of the best agreements Ghana could have.
According to her, Ghana will always be resorting to the International Monetary Fund (IMF) for bailout if it continues to give out its mineral deposit in such concessionary terms.
She has berated Ghana’s continuous demand for loans from the IMF despite having so much natural resources to boast of.
“Gold, diamond, oil, bauxite, those are what we call traditional minerals; all these have been there. Since we became independent, we have been going to the IMF, borrowing, with all kinds of terms, and we ask ourselves why. There’s this adage that if you are doing the same thing, don’t expect different results. If this is how you are going to continue to exploit and extract your natural resources, don’t expect ever to be free of the IMF. It becomes like cyclical malaria,” she said on Accra-based Citi TV Monday, December 11, 2023.
She wants Ghana to emulate other agreements from other jurisdictions unlike the concessionary deals that have served the interests of foreigners at the expense of the nation.
“We should be exploring; each year we should be looking at similar situations in terms of resource availability, resource finding, and what they are doing. That is what we are saying. We don’t have to go back into the royalties,” she noted.
Her Ladyship further suggested that Ghana should ‘leverage on the money market.
She urged those in charge of affairs to be on guard and make proper recommendations to the state in order for the citizenry to benefit.
“There are so many variations, modules, which somebody should do their homework to be able to be in a position to recommend a number that will suit Ghana. With all the figures and all that. Simply ask yourself the question, is this formulation of an agreement for the exploitation of our national worth, as good as it could ever possibly be?” Madam Akuffo quizzed.
The Lands and Natural Resources Minister, Samuel Abdulai Jinapor, signed an agreement in November with an Australian company to mine Lithium in the Central Region.
He has enlisted some significant advantages expected from the implementation of the Lithium deal, disclosing that the execution of the contract will give Ghana 10 per cent in the form of royalties which will be one of the highest in the country’s mineral exploration history.
He added that government has also secured 19 per cent state participation in Barari DV Limited, which is projected to scale up to 30 per cent by the end of the contract.
“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,” he said, assuring that the deal is in the ultimate interest of all Ghanaians.
The Chief Executive Officer for the Minerals Commission, Martin Ayisi, on the other hand had said the critical statements made by some individuals on the deal stems from a lack of thorough reading of the agreement, noting that many of the concerns raised are based on inaccurate assumptions and unsupported assertions.
He explained that the $250 million project, located at Ewoyaa in the Mfantseman municipality of the Central region, is set to commence production by 2025. The deal includes a 10 per cent royalty and 13 per cent free carried interest by the state, surpassing the existing 5 percent and 10 percent, respectively, for other mining agreements.
He noted that the Barari DV Ghana Limited is also required to contribute 1 per cent of its revenue to a community development fund for the upliftment of the mining area.
READ ALSO: Policy on Lithium is needed to guide Ghanaian authorities – Edward Bawa
