Minister for Lands and Natural Resource, Samuel Jinapor, has revealed that government’s lease agreement with Barari DV Limited which affords the country 10% royalties on lithium mined is unprecedented.
According to him, government has already secured 19% state participation in the mining company, with the requirement to scale it up to a minimum of 30% Ghanaian participation through listing on the Ghana Stock Exchange for the shares to be made available to Ghanaians and Ghanaian entities.
He explained that by this, Barari DV Limited, the holder of the mineral right on lithium, likewise Ghanaian and state participation will be 30% and foreign participation will be a maximum of 70%.
This, Mr Jinapor noted, has never happened in the country in respect of any mineral.
“Let me forcefully state that this lease differs from all previous mining leases in many respects. Suffice for me to point out that it is the first time in the history of our country that we have successfully negotiated for 10% royalties for any mineral, which is one of the highest for the exploitation of any mineral across the world…”
Samuel Jinapor
Furthermore, Mr Jinapor stated that for the first time in the history of the country, a mining lease contains provisions for the establishment of a refinery, that is value-addition and beneficiation. He highlighted that the mining lease has provisions which insists that a refinery will be established here in Ghana for the processing of lithium, which has never happened.
Lands minister clarifies lithium lease agreement
Addressing the press today, December 7, 2023, the lands minister in clarifying some misgiving on the agreement, underscored that there has been some commentary on the mining lease under reference with several people and institutions sharing their opinion on the transaction.
With this, he revealed that Government welcomes the extraordinary public interest and scrutiny of the mining lease as it is the surest way of ensuring that the mineral resources of the country are utilized for the benefit of the Ghanaian people as dictated by the national constitution.
Nonetheless, he indicated that much of the commentaries ignore the actual terms of the lease which he is told is available on the website of the Minerals Commission.
“Firstly, Barari DV Limited, the company granted the mining lease for the exploitation of lithium in Ewoyaa, has been undertaking exploration for almost a decade in the Central region of Ghana. From when they were first granted a recognizance license in August 2012, which was subsequently converted to a prospecting license in March 2018 for three years and renewed for three additional years in July 2021. Barari DV Limited has been engaged in recognizance exploration and prospecting for all these years.”
Samuel Jinapor
Furthermore, Mr Jinapor emphasized that when Barari DV Limited reported commercial find of lithium, government took a decision not to treat the mineral in the same manner in which other had been treated in the past.
He noted that government therefore decided to make a policy for the exploitation and management of lithium and other green minerals of the country before any form of negotiations will commence.
“To make the development of the policy more participatory, on 13th July 2022, I presented to parliament on behalf of government, a statement setting out the general framework of the proposed policy for the development, management and exploitation of the green minerals in our country.”
Samuel Jinapor
Following inputs from members of parliament and other stakeholders, the lands minister emphasized that a policy was developed by the ministry and submitted to cabinet, which after intense scrutiny, critique and inputs, approved a reviewed policy on 27th July 2023.
The approved policy, he revealed, includes an increase in the royalties’ rate for green minerals, an increase in state and Ghanaian participation in all green mineral operations to a minimum of 30%, among others.
“It was based on this policy we entered into negotiations with the company leading to the signing of the mining lease.”
Samuel Jinapor
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