The Minister of Lands and Natural Resources, Samuel Abu Jinapor says he is pleased with the terms secured in the lithium lease agreement with Barari DV Ghana Limited despite the many criticisms expressed by experts and civil society organization. He emphasized the government’s commitment to maximizing Ghana’s gains by negotiating higher royalties, increased state participation, and measures for value addition.
Barari DV Ghana Limited, a subsidiary of Atlantic Lithium Limited, has been granted a 15-year mining lease for lithium extraction at Ewoyaa in the Mfantseman Municipality of the Central Region. The terms of the lease have been revamped to ensure optimal benefits for the country, with the $250-million project scheduled to commence in 2025.
Notably, the deal includes a 10% royalty and 13% free carried interest in the state, surpassing the current 5% and 10%, respectively, found in other mining agreements. Minister Jinapor, speaking on the Point of View on Citi TV, affirmed that the negotiation of the agreement was well-executed.
“I personally as a Minister, I am very satisfied with the terms we have agreed with them. This was thoroughly negotiated as it was done in a space of about two years and this has been marked down properly.”
He further added “I know as Minister that the success, benefaction or otherwise and the interest the Ghanaian people are going to get will fundamentally depend on how the Ghanaian government police the processes leading to first ratification, second the construction of the mine, third the production, fourth the value addition, the benefaction then fifthly the benefit sharing. That for me is the gravamen of the whole matter. That is the crust of the matter.”