Oppose all new mining contracts that do not include refinement locally - Dr Kwakye to Ghanaians

Director of Research at the Institute of Economic Affairs (IEA), Dr. John Kwakye, has urged Ghanaians to oppose all new mining contracts that do not include refinement locally.

He stated categorically that it is about time Ghana adds value to its minerals to increase the country's forex earnings.

The increment in the country's forex earnings, he said, will shore up the local currency - Cedi.

In a tweet sighted by GhanaWeb Business, Dr John Kwakye stated that, “Ghanaians must oppose all new mining contracts that do not include refinement locally. We have to start adding value to our minerals to increase our forex earnings to shore up the cedi.”

His comment comes after Government of Ghana granted Barari DV Ghana Limited, a subsidiary of Atlantic Lithium Limited, a 15-year mining lease to commence the construction and mining of lithium at Ewoyaa in 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

https://t.co/vcdSbn3m2G. Ghanaians must oppose all new mining contracts that do not include refinement locally. We have to start adding value to our minerals to increase our forex earnings to shore up the cedi.

— J. K. Kwakye (@JohnKwabenaKwa1) October 21, 2023