Spokesperson for former President John Dramani Mahama, Joyce Bawah Mogtari, has expressed the need for government to reconsider its position on outsourcing the mining of lithium in the country.
According to her, the benefits of mining and processing of lithium in the country will be enormous.
Expressing gratitude to retired Chief Justice, Sophia Akuffo, on what she described as a “very nationalistic and futuristic” commentary on the Lithium Mining agreement signed by the government, Ms Mogtari emphasized the need for government to undertake due diligence with the lithium discovery.
She emphasized that even more succinct is the IEA’s position and recommendations to ensure Ghana doesn’t get short-changed, favouring some individuals and foreign interests.
“After reviewing the agreement, many believe it is unfairly skewed against Ghana. And I agree that our Lithium find should be mined and processed, here in Ghana, to create jobs and fuel the local economy for the benefit of the people. Ghana deserves better. This is the time to give this country what it deserves.”
Joyce Bawah Mogtari
Meanwhile, political scientist, Prof Ransford Gyampo, has underscored the need for members of parliament to be resolute in the position on the Lithium agreement. He urged the legislators not to allow themselves be “lobbied and be bribed” to mortgage the national interest in the Lithium deal.
“It is robbery and we are watching how you would live by your titles as HONORABLE people in acting in the national interest.”
Prof Ransford Gyampo
Moreover, Prof Gyampo emphasized that government must necessarily ensure the proceeds from the Lithium exploration are put to go use. With this, he stated that President Akufo Addo has a good opportunity to amend the colonial legal regime that has been used to “rob us off” our natural resources.
“They have bribed a few people and taken our gold and oil virtually for free. Lithium too? No way!”
Prof Ransford Gyampo
It will be recalled that the Institute of Economic Affairs (IEA), a policy think-tank, expressed reservation over the recent lithium mining lease agreement between government and Barari DV Ghana Limited, a subsidiary of Atlantic Lithium Limited.
Government cautioned against lithium agreement
The Institute advocated for a reconsideration of the deal, revealing that it fails to address historical mistakes in past minerals exploitation agreements.
To this end, it reckoned that the agreement, being a contract to exploit Ghana’s natural resource, and as per Article 268 of the 1992 Constitution, requires ratification by parliament in order to be legally effective.
Moreover, IEA highlighted that the terms of the agreement, which the Minister of Lands and Natural Resources and the Chief Executive Officer of the Minerals Commission, have touted as favourable to Ghana and surpassing those of other lithium leases around the world, is not different in principle and substance from any of Ghana’s previous colonial-type agreements, which over the years, have yielded very little to the overall benefit of the average Ghanaian.
It explained that in modern best-practice, the exploitation or extraction of mineral resources is covered by either a joint-venture agreement – whereby the host country takes an agreed ownership in the mining company.
Alternatively, it noted that the extraction of mineral resources is a service contract whereby the host country contracts the mining company, selected through a transparent and competitive bidding process, to mine the mineral and be reimbursed for its cost of production plus a profit margin.
In place of the agreement, IEA proposed that the state set aside current arrangements and establish a Ghana Lithium Company (GLC) to develop the entire lithium value chain.
This, it noted, includes mining to manufacturing of batteries and other products in Ghana, adding that “per current international best practice, a local refinery must be established even before excavation commences”.
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