The Minister of Lands and Natural Resources, Hon. Samuel A. Jinapor, MP, has persisted in his steadfast and unwavering defense of the Ghana-Barari DV lithium agreement, outlining the main features that set it apart from other agreements and make it uniquely Ghanaian-centered.
Speaking at a forum on the agreement hosted by a few Civil Society Organizations (CSOs) on Friday, December 15, 2023, Hon. Jinapor took the time to reveal important information about the agreement, busting myths and false narratives surrounding it and clearing up any political turmoil that may have arisen as a result of it.
He argued vehemently that no administration in Ghanaian history had ever inked a more lucrative agreement with the best interests of its citizens at its center.
Explaining the different provisions of the agreement, the Minister expressed his belief that they represent a shift away from the historically exploitative colonial attitude to Ghana's natural resources. According to Hon. Jinapor, these provisions emphasize value addition in the exploitation of the nation's mineral riches and are in line with the government's strategic goal.
The Lands Minister cited the value addition clauses, the requirement for local involvement, and the listing of Bavari DV on the Ghana Stock Exchange as important aspects of the agreement that, in contrast to certain presumptions, enable for possible Ghanaian investment through the purchase of shares guarantees the supremacy of Ghanaian interests in the lithium ore's utilization.
He argued vehemently that no administration in Ghanaian history had ever inked a more lucrative agreement with the best interests of its citizens at its center.
Explaining the different provisions of the agreement, the Minister expressed his belief that they represent a shift away from the historically exploitative colonial attitude toward Ghana's natural resources. According to Hon. Jinapor, these provisions emphasize value addition in the exploitation of the nation's mineral riches and are in line with the government's strategic goal.
The Lands Minister cited the value addition clauses, the requirement for local participation, and the listing of Bavari DV on the Ghana Stock Exchange as important aspects of the agreement that, in contrast to some presumptions, guarantee that Ghanaian interests take precedence in the extraction of the lithium ore. These features permit potential Ghanaian investment through the purchase of shares.
Equipped with reliable and pertinent data from other nations, Hon. Jinapor argued that the leasing agreement is the finest possible deal the nation could have worked out.
Australia produces 52% of the lithium used worldwide. 25% come from Chile. The greatest lithium-producing nation in Africa is Zimbabwe, and while their grades are higher than ours, Australia, Mali, and Zimbabwe all set their royalties at 5%, 6%, and 5%, respectively, for lithium. The 10% bonus that the Ghanaian government has secured is double that of Zimbabwe and Australia and 4% higher than that of Mali, he stated.
For the first time, we have imposed legal requirements on this firm, requiring it to list on the Ghana Stock Exchange. They also need to include a minimum of thirty percent Ghanaians. We now have 19%, which means we have 11%, and we may have more. The main thing that, in my opinion, eliminates the colonial word of mining is this arrangement.
Value addition is the second. Although we have always exported raw minerals, this is the first time we have signed a mining lease with requirements requiring them to build a technological plant and refinery in Ghana to maintain a sizable share of the value chain. It has never occurred previously," he declared.
The government's commitment to transparency and accountability is demonstrated by the signing ceremony, which was attended by a large number of media representatives. He also denied claims that the deal has been cloaked in secrecy, emphasizing that transparency has been its defining feature.
Hon. Jinapor accepted public criticism and comments, but instead of absurdly disparaging the agreement his group signed, he asked opponents to suggest better and alternative proposals.
He gave Ghanaians the assurance that the government will keep pursuing plans, directives, and agreements that advance and safeguard the nation's greatest interests.
In the meantime, on Friday, December 15, 2023, the Lands Minister used the platform to refute claims made by some members of the public that the entire deal is being rushed, emphasising that "government did not rush in signing Atlantic Lithium agreement." The Ministry of Lands and Natural Resources signed the first-ever Lithium Lease Agreement with Lithium Atlantic, an Australian mining firm, in October for the mining of the mineral at Ewoyaa in the Central Region.
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