Nature of lithium deal is because there is no geological data - CEO of Minerals Commission

The Chief Executive Officer (CEO) of the Minerals Commission, Martin Kwaku Ayisi, has shed light on the nature of the lithium agreement between the government of Ghana and Barari DV Ghana Limited.

He argued that Ghana stands to benefit little as a result of the lack of geological data.

According to him, the absence of this data played a crucial role in shaping the agreement.

This comes after institutions like the Institute of Economic Affairs Ghana (IEA) and the former Chief Justice, Sophia Akuffo, criticised the lithium lease agreement between Ghana and Barari DV Ghana Limited to explore and mine Lithium.

The former CJ, stated that the deal was poorly negotiated and that Ghana could have gotten a better deal than what it's currently stated in the agreement, which is about 10%.

The CEO of the commission in a presser on December 7, 2023, defended and gave justification for the current state of the agreement.

Martin Ayisi emphasised the challenges faced by the country in attracting potential investors due to the lack of comprehensive geological information.

He pointed out that several companies had previously invested substantial amounts in exploration in the Savanna Region, only to find nothing substantial and subsequently withdraw.

“There are a lot of companies that have come here and they have left. Some came, spent millions of dollars in the Savanna Region, they didn't find anything and they left, we had to give them out on a small scale. Then of course we are competing with countries with better geology, far better geology than us. Zimbabwe and Mali and the grades are very high. Gulamina has about 1.38 and Ewoyaa is 1.25.

“Then of course that is the reason why we did not go to the ragged root. The very root that IEA and the other critics are talking about. Other than that, what are we going to do, should we zone Ghana into blocs and say people should come for competitive bidding, where is the data? You have to take people to the data room. But we don't have that information. So, that is why option 1 was approved by the cabinet,” he stated.

He further justified the government's decision to amend the current policy to include green minerals like lithium, citing the absence of geological data as a primary factor.

“Why did the cabinet choose the option that we are using now, where we amend the current policy and include green minerals. These are the justifications, we don't have the geological data. I am the CEO of Minerals Commission and I don't have any occurance in lithium apart from what is Ewoyaa.

“When you take bauxite, Atiwa is known, it’s been there since the times of Kwame Nkrumah, we even have an existing mine at Awaso. So, you have seen two different scenarios where with one, deposits exist for which you have established a Bulk Import Distribution and Export Company (BIDEC) and with the other one there is practically no information, we don't have any data on lithium as we speak,” he added.

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