Home Economy The Lands Minister was misled about the lithium sale -Bright Simons

The Lands Minister was misled about the lithium sale -Bright Simons

by Vesta Daily
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The Lands Minister was misinformed about the lithium sale -Bright Simons

Bright Simons, the Honorary Vice President of IMANI Ghana, has claimed that Samuel Jinapor, the Minister of Lands and Natural Resources, was misled about the lithium agreement between the State and Atlantic Lithium Ltd.

The Lands Minister was misinformed about the lithium sale -Bright Simons

He pointed out that the Minister’s claims that the nation’s lithium exploration agreement with Atlantic Lithium is among the best on the African Continent are clear evidence of this, given the 10% royalty rate and 13% state-carried shareholding in the business.

Speaking on Joy News’ News file, Mr Simons mentioned that there have been occasions in the past, especially during the General Acheampong administration, when the nation had a 55% equity position in mining businesses together with a flexible royalty structure.

“The Minister has been misadvised because if you look at the claims he is making that the deal is the best for the country based on the 10% royalty rate and 13% carried interest for the state.

“In the 1970s, Ghana had a 55% interest participation rate in mining companies, there were times too when we had a variable royalty structure that was higher than the current fixed 10% we have now,” he quipped.

Speaking further, he noted that Parliament must thoroughly scrutinize the lithium deal set to be ratified by Parliament before its ratification.

“Parliament shouldn’t just rubber stamp the deal because there are significant improvements that can be made to the deal.

“Our advice to Parliament is that the deal should be sent back for additional work before Parliament ratifies it,” he noted.

By the first quarter of 2024, Parliament is scheduled to ratify the mining lease agreement for lithium extraction between Ghana and Barari DV Ghana Limited, a subsidiary of Atlantic Lithium.

As stated in Clause 1E of the agreement, the Minister has underlined that legislative ratification is a requirement for the lease and that skipping this step will void the lease.

“By the very term of the lease, therefore, ratification by Parliament is a condition precedent, as an unratified mining lease confers no enforceable right,” the Minister clarified, highlighting the government’s awareness of the significance of parliamentary approval. “The government has always been mindful of this decision,” she said.

He promised that the mining lease would be brought before Parliament under the law and the constitution.

An area of 42.63 km² in and around Ewoyaa in the Mfantseman Municipality of the Central Region is covered by the 15-year lithium mining lease, which was given to Barari, a subsidiary of Atlantic Lithium Limited, an Australian company listed on the Australian Securities Exchange (ASX) and the Alternative Investment Market (AIM) of the London Stock Exchange.

Production on the $250 million project is expected to start in 2025 and is situated in the Central Region’s Ewoyaa, Mfantseman Municipality.

The state will receive a 13% free carried interest and a 10% royalty as part of the arrangement, more than the current rates of 10% and 5% for other mining deals.

Vesta Daily
Author: Vesta Daily

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