Lithium leasing does not mean it's best practice - Sophia Akufo tells government

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.



What the Mineral Commission said about the Lithium deal

PRESS RELEASE

RE: LITHIUM MINING LEASE BETWEEN THE GOVERNMENT OF GHANA AND BARARI DV GHANA LIMITED

The attention of the Minerals Commission (the “Commission”) has been drawn to comments and concerns by some members of the Ghanaian public regarding the mining lease between the Government of Ghana and Barari DV Ghana Limited (the “company” or “Barari”).

This comes on the heels of the announcement by the Minister of Lands and Natural Resources, Hon. Samuel A. Jinapor at a brief ceremony on 19 October 2023 when he signed the first mining lease for the exploitation of Lithium in Ghana and the publication of the lease on the website of the Commission.

For the avoidance of doubt, the mining lease was granted for 15 years to Barari, which is the subsidiary of Atlantic Lithium Limited, an Australian company listed on the Australian Securities Exchange (ASX) and also on the Alternative Investment Market (AIM) of the London Stock Exchange. The lease covers an area of 42.63 Km2 in and around Ewoyaa in the Mfantseman Municipality of the Central Region.

The Commission notes in spite of the publication of the lease which is now widely available to the general public, it has become increasingly clear that the commentators have not read the agreement in its entirety and as result many of concerns are based on assumptions that are inaccurate and assertions that are not supported by facts or any data.

Recognizing these concerns raised, the Commission has scheduled a press conference on Thursday, 7th December 2023 to further explain the nature of the contract and procedures, including the next steps after the grant of the lease.

The Commission would like to assure the public of our utmost commitment to transparency and accountability in dealing with any mineral resources that rightly belong to the people of Ghana.

The Commission further assures the public that the lease was signed in the best interest of Ghana.‎

SIGNED

MARTIN KWAKU AYISI

CHIEF EXECUTIVE OFFICER

MINERALS COMMISSION

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