Ing. Wisdom Edem Gomashie, a prominent mining consultant, has attributed the veil on the controversy surrounding the contentious Ewoyaa Lithium deal to what he described as ‘dirty politics‘.
While the nation eagerly awaits the ratification of the said Ewoyaa Lithium Mining Lease, Gomashie in a detailed analysis, shed light on the intricate web of political maneuverings, fiscal negotiations, and the hypocrisy that confronting this critical economic venture.
Gomashie’s insights delve into the heart of the issue, exposing the conflicting narratives and the unhealthy political attempt by some parties to claim that the government’s revision of the royalty rate from 10% to 5% is “because of falling lithium prices.”
However, Mr. Gomashie believes, “IMANI and some well-informed natural resources governance experts have debunked that claim”.
“While we are all, in the spirit of socio-economic development hoping that, Parliament of Ghana ratifies the Ewoyaa lease, to at least give hope to the people of the area and the investor (who is just a victim of dirty politics in our country), however, it should be done in a manner that does not nail the previous government in any bad light and that, SOME UNSPEAKABLE HYPOCRITES must be put to check…”
Ing. Wisdom Edem Gomashie
Background and Diverse Opinions
The Ewoyaa Lithium Mining Lease was signed by the former Minister of Lands and Natural Resources, Hon. Samuel A. Jinapor, in October 2023 and was slated for ratification by mid-2024. However, the deal faced stiff opposition from the then-opposition, the National Democratic Congress (NDC), with the exception of Hon. Kwabena Donkor, who spoke as a well-informed professional.
The diverse opinions on the deal were not limited to political parties; a host of civil society organizations (CSOs), academics, and media outlets also rose against the agreement on claims that the deal as it was, did not cover the best interest of the country and the host communities to be specific.
This public outcry, coupled with the then-ruling New Patriotic Party’s (NPP) own problems in the run-up to the general elections, ultimately prevented the ratification of the lease through Parliament.
Significance and Economic Implications
Gomashie’s analysis reveals that the Ewoyaa Lithium Mining Lease as at then, offered a significant economic opportunity for the country.
The deal included a 10% royalty rate, a 13% free-carried interest, and the creation of a community development fund that would allocate 1% of revenue (not profits) to the host communities, Mfantseman District and its environs.
According to Gomashie, the lease period was as well reduced from the traditional 30 years to 15 years, allowing the state to renegotiate terms more frequently.
These provisions, made amidst predictions of falling lithium prices, were intended to safeguard Ghana’s interests and ensure a more equitable distribution of the benefits from the exploitation of this valuable mineral resource.
However, the public perception and the stance of the then-opposition, NDC ultimately prevented the ratification of the deal.
The Politics of the Deal
Gomashie’s analysis delves deeper, exposing the hypocrisy of those who initially opposed the when it was far better and have now lost their voices when it got bad.
He points out that the NDC and some CSOs, including academics, had claimed the 10% royalty rate negotiated by the New Patriotic Party (NPP) was “not good” and should be revised to 5%.
Now, with the National Democratic Congress in power, they are faced with the dilemma of either “Maintain the bad deal by the NPP” or “Make it Better.”
Gomashie also questioned the sudden shift in stance, noting that the NDC and their hired consultants cannot justify reversing the royalty rate from 10% to 5% solely based on a fall in lithium prices.
Gomashie emphasised the need for anti-corruption agencies and practitioners to scrutinize how a “supposed bad deal of 10% royalty is converted into a good a deal of 5% overnight.”
As a mining Consultant, Ing. Wisdom Edem Gomashie’s analysis opened a Pandora’s box, exposing the intricate web of politics, fiscal negotiations, and the hypocrisy that have surrounded the Ewoyaa Lithium Mining Lease.
While the nation awaits the ratification of this critical deal, Gomashie’s insights serve as a clarion call for transparency, accountability, and a genuine commitment to the economic development of the country.
READ ALSO: CalBank Backs Trailblazing EdTech to Close Skills Gap in Ghana
