Suspending Ghana's lithium deal is an absolute 'sensible move' - Parliament told

Editor-in-Chief of the Insight newspaper, Kwesi Pratt Jnr. has thrown his support behind those calling for the suspension of the lithium agreement between Government of Ghana and Barari DV Ltd.

Kwesi Pratt Jnr. speaking on Peace FM's morning show 'Kokrokoo', joined Sam Okudzeto, a member of the Council of State, and civil society organizations insisting on Parliament not to ratify the mining lease.

They argue the deal is not "rewarding enough", so must be suspended for further and better consultations and clarifications.

Mr. Pratt, when asked by host of 'Kokrokoo', Kwami Sefa Kayi, about his take described the stand by the Council member and the civil society groups as a "sensible move".

"I think it is an absolutely sensible move, first, to allow for greater discussion and consultation," he maintained, adding "the experts don't know everything. Even in this debate, it has been proven that the experts don't know everything and that sometimes the lay people bring perspectives which the experts don't have".

Lithium Deal

In October this year, the government granted a mining lease to Barari DV Ltd, a subsidiary of Atlantic Lithium Ltd, for the exploitation of lithium in Ghana with the country to benefit 10% of royalties and own 19% shares in the company.

“This lease differs from all previous mining leases in many respects. It is the first time in the history of our country that we have successfully negotiated for 10 percent royalties for any mineral, which is one of the highest for exploitation of any mineral across the globe.”

"We have already secured 19 percent state participation in this mining company with the requirement to scale it up to a minimum of Ghanaian participation through listing on the Ghana Stock Exchange for shares to be made available to Ghanaians and Ghanaian entities", Minister for Lands and Natural Resources, Samuel Abu Jinapor said at a Meet-the-Press series organized by the Ministry of Information.

However, the agreement has been met with criticisms from a section of the public; the lastest coming from former Chief Justice, Sophia Akuffo, Professor Ransford Gyampo of the Political Science Department of University of Ghana and the Insitute of Economic Affairs (IEA).

But at a press briefing on Monday, 11th December 2023, the Minister for Lands and Natural Resources, Chief Executive Officer of the Minerals Commission, Martin Ayisi and the Chief Executive Officer of the Minerals Income Investment Fund (MIIF), Nana Yaw Koranteng, took turns explaining the processes leading to the grant of the lease and the terms of it to the public.

They insisted that the 10% royalties, 13% free carried interest, 6% interest secured by MIIF and the additional 3% in the Australian listed holding company together with other benefits like the establishment of a refinery and the sale of by-products domestically are unprecedented and in the best interest of Ghana.