NDC criticises Lithium deal - Urges Parliament not to ratify agreement
The National Democratic Congress (NDC) has expressed its disapproval of the Mining Lease Agreement between the government and Barari DV Ghana Limited for the exploitation of Lithium and other associated minerals in the Ewoyaa community in the Mfantseman Municipality in the Central Region.
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In a press statement released on December 13, 2023, the NDC stated that after careful examination of the terms of the Mining Lease Agreement, they concluded that the deal was not in the best interest of the country.
The party highlighted several reasons for their opposition to the agreement and called on Parliament to not approve it.
“It is our considered position that Parliament should not consider the ratification of the Lease Agreement until all these pertinent issues are satisfactorily addressed in the best interest of Ghanaians,” it stated.
Reasons
First, the NDC pointed out that the existing mining laws and policies in Ghana have not benefited the nation over the years, and there was a need for an urgent review of these laws, particularly in relation to green minerals.
The party's flag bearer, John Dramani Mahama, it stated, had promised to review the laws governing the extractive industry to ensure that the country maximises its share and local participation in the exploitation of natural resources.
The NDC also emphasised the need for a new model for the exploitation of mineral resources such as Joint Ventures and Service Agreements that provide for equitable benefit sharing, enhanced local participation and value addition.
The party criticised the lack of extensive engagement with affected local communities and key stakeholders in the processes leading to the execution of the controversial lithium deal.
They believe that all stakeholders in the extractive sector should have a say in the kind of law and model under which lithium and other green minerals should be exploited for the maximum benefit of the state.
Specifics
The NDC also raised concerns about specific provisions in the mining lease agreement, particularly regarding the establishment of a chemical plant to process lithium locally.
They noted that the requirement for a local chemical plant was not mandatory, and there were no specific provisions emphasising Ghana’s control over the lithium mining value chain and the benefits thereof.
The NDC, therefore, called for a reviewed mining regime that provides for sustainable funding and strengthening of the Ghana Geological Survey Authority to engage in reconnaissance and prospecting, particularly, regarding green minerals.
The party believes that this, supported by the Minerals Income and Investment Fund under the right policy framework, will enhance the bargaining power of the state in the exploitation of mineral resources.
Background
The Ministry of Lands and Natural Resources, on October 19, signed the first-ever Lithium Lease Agreement with Barari DV Ghana Limited, a subsidiary of Lithium Atlantic, an Australian mining firm, for mining of the mineral at Ewoyaa.
The company is investing $250 million into the project and is expecting its first production in 2025.
The Minister of Lands and Natural Resources, Samuel Abu Jinapor, signed on behalf of the government while the Chairman of Lithium Atlantic, Neil Herbert, signed for his company at a brief ceremony in Accra.
Based on the newly approved policy statement on mining of green minerals in Ghana, the government had increased the state's free carried interest in the company from 10 per cent to 13 per cent.
