The Minority Caucus in Ghana’s Parliament is criticizing the government’s renegotiated lithium mining lease with Barari DV Ghana Limited, calling it a “complete compromise” of the country’s national interest. The deal reduces the royalty rate from 10% to 5%, which the Minority argues is a significant downgrade from the 2023 agreement.
Key Concerns:
– Reduced Royalty Rate: The Minority is questioning why the government reduced the royalty rate, arguing that the company would still be profitable under the higher rate.
– Weak Value-Addition Requirements: The Caucus is criticizing the lack of strong provisions for value addition, including the proposal for a chemical plant.
– Lack of Control Over Lithium Value Chain: The Minority is concerned that the deal doesn’t secure Ghana’s control over the lithium value chain.
– Free Zone Company Benefits: The Caucus is opposing agreements with free-zone companies based on long tax holidays.
The Minority is demanding that the government restore the 10% royalty rate and negotiate better terms. They argue that lithium is a strategic mineral and Ghana should aim for the best possible deal.
