Ghana failed to take advantage of the global demand for lithium - Tony Aubynn

A former Chief Executive Officer of the Minerals Commission, Dr. Toni Aubynn, has asserted that the government of Ghana failed to take advantage of the importance and global demand for lithium.

According to him, the current deal between the government and Barrari DV was just cosmetic and tokenistic.

In a LinkedIn post sighted by GhanaWeb Business, Toni Aubynn stressed that Ghana has lost an opportunity to benefit adequately from the recent lithium deal.

"After a careful analysis of the recent agreement for the development of our lithium resources in Ewoyaa in the Central region of Ghana, I have come to the conclusion that Ghana failed to take advantage of the current importance and global demand for lithium.

"The increase in royalty rate and free carry interest announced by government pale into insignificance if one considers the current and possible future global demand for the commodity," part of his post read.

He further said, "In the recent case of Ghana, apart from the opaqueness with which this new mineral deal has been negotiated, the current marginal increase in the existing rates of benefit sharing for Lithium is nothing more than cosmetic and tokenistic.

"Lithium and the family of critical minerals are now so important (important than the hydrocarbons and gold) that it was an opportunity sent from heaven for Ghana to redeemed itself from the shackles of existing postcolonial mining framework to one that is responsive to current global and local situations.

"In short, given the criticality and present global demands for Lithium and other critical minerals, our present agreement is a lost opportunity to exact optimal benefit for Ghana, simpliciter," he added.

Citing countries like Mexico and Australia to buttress his claim, Toni Aubynn said these countries have developed their lithium and other critical minerals for 100% or majority interest due to the global importance and forecast demand for the commodity.

He added that Australia has invested an amount of 4billion dollars into the development of lithium.

His comment comes on the back of the 15-year lease agreement signed by the government of Ghana with lithium mining company, Barari DV Ghana Limited, a subsidiary of Atlantic Lithium Limited, to commence the construction and mining of lithium at Ewoyaa in the Mfantseman Municipality of the Central Region.

The deal includes a 10% royalty and 13% free carried interest by the state, surpassing the existing 5% and 10%, respectively, for other mining agreements.

The Minister of Lands and Natural Resources, Samuel Abu Jinapor, noted that by the end of the finalization of the lithium mining deal, Ghana will have a participation rate of 30% while Barari DV Ghana Limited will get 70%.

According to him, this is the first time in the country’s history that it has been able to negotiate 10% royalties in a minerals deal.

Read the former Chief Executive Officer of the Minerals Commission's post below;

SA/AE



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