Despite the assurance from government that Ghana’s lithium agreement with Berari DV is one of the best the nation has had and was entered in the interest of the state, Ransford Gyampo, a Professor of Political Science and Natural Resources, says Ghanaians have been shortchanged.
He says the fact that the percentage negotiation for lithium is higher than other natural resources does not mean Ghanaians should be excited since “a 20% score and 22% are all failure” despite the latter being an improvement of the former.
The Minister of Lands and Natural Resources, Samuel Abdulai Jinapor, 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.
But reacting to the issue, Prof. Gyampo, who is a native of the Mfantseman municipality where the mineral has been discovered, says he has had discussions with all the people that matter in the entire enclave, including the four paramount chiefs, and until government revisits the negotiation table to strike better deals for the state, the mining can never happen at Ewoyaa.
“I have spoken to those who matter in the area, met with the four paramount chiefs, I’ve had a meeting with the youth groups and we know what we have discussed. These people they can go about buying and bribing people their way, they will come and meet us there, they have to kill us, before they mine,” he threatened.
The Professor explained that in modern best practices, the exploration of mineral resources is supposed to be guided by certain practices and blueprints.
He said the three forms of agreement guiding the exploration of minerals which include the joint venture agreement, the service venture agreement “and you have the colonially imposed concessional agreement.”
“With the joint-venture agreement, the state holds a certain share in the mineral that’s being mined so the state is not shortchanged. The service contract says whatever you’ve mined belongs to the state so the state pays you the cost of your service and add a percentage profit. The concessional agreement rather gives ownership to the one who mines,” he elucidated, expressing his dissatisfaction with Ghanaian leaders always going for the latter at the detriment of the state.
Some Civil Society Organisations and individuals including former Chief Justice, Sophia Abena Boafowaa Akuffo, have raised concerns about the agreement saying it is not in the interest of the state.
The Minority in Parliament has also asked the government to submit the deal to Parliament for approval and until such is done, they will not allow any mining to commence.
Ranking Member on the Energy and Mines Committee in Parliament, John Abdulai Jinapor, in a press conference told the media that the next NDC administration will abrogate all mining contracts that did not go through Parliament until after the right thing is done.
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