Ghana’s Parliament is currently reviewing a lithium mining lease agreement between the government and Barari DV Ghana Limited, a subsidiary of Atlantic Lithium, for the Ewoyaa Lithium project in the Central Region. The agreement allows for the mining of lithium and other rare earth minerals, but the Minority Caucus is pushing for its rejection, citing concerns over the terms.
Key Concerns:
– Similar Terms: The Minority argues that the new agreement has similar terms to a previous document laid in the Eighth Parliament, which was rejected.
– Lower Royalty Rate: The current agreement has a lower royalty rate, starting at 5% and increasing to 10% when prices recover.
– Volatile Lithium Prices: IMANI Africa warns that the global lithium market is highly volatile, and the contract could leave Ghana vulnerable to revenue risks.
– Risky Partner: Atlantic Lithium is a junior miner with limited cash reserves and a volatile share price, making it a risky partner for Ghana.
Government’s Response:
– Renegotiated Terms: The government renegotiated the agreement due to the sharp fall in global lithium prices.
– Job Creation: The project is expected to create jobs for Ghanaians.
– Community Benefits: The agreement allocates 1% of revenue for community development.
The Speaker of Parliament has referred the agreement to the Lands and Forestry Committee for review, and the Minority is urging rejection. IMANI Africa is also calling for a more favorable contract, citing structural weaknesses in the agreement.
