Lithium Lease: Critics are ignoring the actual terms of agreement - Abu Jinapor

In the face of mounting criticisms from various quarters regarding the government's lithium deal with Barari DV Ghana Limited, Samuel Abu Jinapor, the Minister in charge of Lands and Natural Resources, has stepped forward to defend the agreement.

According to him, critics of the deal have been overlooking the actual terms outlined in the agreement.

The controversy surrounding the lithium deal intensified when both the former Chief Justice, Sophia Akuffo, and The Institute of Economic Affairs Ghana (IEA) voiced their concerns.

The former Chief Justice questioned the current nature of the deal, expressing doubts about its ability to generate substantial revenue for the country.

She drew parallels with past agreements that were signed during the colonial era.

However, the minister in a presser on December 7, 2023, indicated that the critics of the mining lease ignore the actual terms that were agreed on on the deal.

“Since this act, there have been some commentaries on the mining lease under reference with some individuals and institutions sharing their opinion on the transaction. The government welcomes the extraordinary interest and scrutiny of this mining lease as it is the surest way of ensuring that the mineral resources of our country are utilised for the benefit of the Ghanaians people as dictated by our national constitution. We however note that much of the commentary ignores the actual terms of the lease which I am told is available on the website of the mineral commission,” he said.

The minister pointed out that the lithium deal with Barari DV Ghana Limited differs significantly from previous mining leases granted for mineral exploitation in the country.

“ On October 27, 2023, I issued a 23 point release detailing the processes leading to the grant of the mining lease and giving highlights of the lease which obviously differs from all previous mining leases granted for the exploitation of any mineral in our country. This is easily verifiable in a cursory examination of the mining lease under reference. Regrettably, some public commentary on the matter continues to ignore all these details,” he added.

What the Sophia Akuffo said about the lease

Former Chief Justice Sophia Akuffo has raised concerns about the lithium leasing agreement recently signed by Ghana.

According to her, the leasing approach used by the government is not the most optimal method for lithium extraction.

“A huge benefit must be floating somewhere that is why somebody will find this, a perfect, wonderful and describe it as the best lithium leases around the world. Well, maybe leases but there are all kinds of lithium extractions formats which are much better. Leasing is not necessarily the best methodology, there are others. There is a joint venture, service contract with many different permutations,” she said in an interview with Accra based TV3.

On October 20, 2023, Ghana signed a mining agreement with Barari DV Ghana Limited.

It was described by the government and the Mineral Commission as the best lithium deal in the world.

They maintained that the agreement underwent thorough scrutiny, considering all available options before reaching the final deal.

However, disagreeing with the description of the deal as the best deal, Sophia Akuffo, stated that the government could have bargained for benefit for Ghana.

“It is not the best, it is like percentages, which is the base figure. If you are coming from a super miserable formulation to this, then you will say that is the best Ghana has had. Maybe it is the best it has had yet but it is not the best Ghana could have had. I always say that pretty good is not enough for Ghana, the optimum best is what we deserve,” she said.

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The Lithium Agreement signed between government and Barari DV Ghana Limited