Ghana to generate a lot of revenue from lithium mining - Ben Boakye

Executive Director of Africa Centre for Energy Policy (ACEP), Benjamin Boakye, has said Ghana would generate a lot of revenue from lithium mining.

He said the shoring up of the country's revenue from the natural resource would go a long way to put the economy on a sound footing and build the country at large.

Speaking on TV3's Ghana Tonight show on Tuesday, October 24, 2023, Benjamin Boakye stated that the mining of lithium, which is the new 'gold' would help in the production of electric vehicle batteries.

The use of lithium for electric car batteries, he added, enables the vehicles to last longer.

“Lithium has become more or less the gold of the electrification world that we have today, it means to allow electric cars to be produced you need lithium batteries that are more efficient to be able to last for a longer duration. So Ghana is lucky to be among the countries that have deposits of lithium," Ben Boakye said.

He added that, “The first of its kind is the one that Atlantic Lithium just signed with the Ghana government which we are hoping could be produced in 15 years, that is good news particularly where a lot of revenue could come from that resource to support the country."

The Executive Director of ACEP's comment was on the back of the Government of Ghana granting a 15-year mining lease to 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 $250-million project is expected to commence production by 2025.

The Minister of Lands and Natural Resources, Samuel Abu Jinapor, signed the 15-year lease agreement over an area of approximately 42.63 square kilometres with the company in Accra on October 19, 2023.

The minister explained that per the mining lease which was in line with the country’s Green Minerals Policy, there had been an increase in royalties rate from the standard five percent to 10 percent.

He added that there had also been an increment in the state’s free carried interest from 10 percent to 13 percent.

Mr Jinapor further said government, through the Minerals Income Investment Fund (MIIF), would acquire an additional six percent shares in the mining company and 3.06 per shares in the holding company, which had been listed on the Australian and London Stock exchanges.

It would be recalled that on July 13, 2022, the Lands and Natural Resources Minister, on behalf of President Akufo-Addo presented a policy statement on the development and management of the green minerals to parliament.

The document was anchored on guaranteeing their exploitation benefitted Ghanaians.

Subsequently, he said, the policy was submitted to Cabinet, which after considerable debate and critique, approved on July 27, 2023.

Some of the key features in the policy include an increase in royalty rate, increase in Ghanaian participation in all green mineral operations to a minimum of 30 percent, enhanced local content and local participation, including listing on the Ghana Stock Exchange; and value addition and beneficiation.

Based on those policies, the Minister said the government entered negotiations with Atlantic Lithium.

SA/MA

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