<<Print>>

Atik Mohammed has objected to the current form of the lithium mining agreement between the Government of Ghana and Barari DV Ltd.

The Minister for Lands and Natural Resources, Samuel Abu Jinapor has assured Ghanaians that the deal between government and Barari DV Ltd, a subsidiary of Atlantic Lithium Ltd, to mine Ghana's lithium has significant advantages revealing that the execution of the contract will give Ghana 10% of royalties which, to him, is one of the highest in the country’s mineral exploration history.

“This lease differs from all previous mining leases in many respects. It is the first time in the history of our country that we have successfully negotiated for 10 percent royalties for any mineral, which is one of the highest for exploitation of any mineral across the globe,” he said at a Meet-the-Press series organized by the Ministry of Information.

He also disclosed that the government has also secured a 19 percent State participation in the mining company.

“We have already secured 19 percent state participation in this mining company with the requirement to scale it up to a minimum of Ghanaian participation through listing on the Ghana Stock Exchange for shares to be made available to Ghanaians and Ghanaian entities," he expounded.

The Minister at a press briefing on Monday, 11th December 2023 further emphasized the nitty-gritty of the deal, stating the government has the 10% royalties plus 13% free carried interest.

Also, a 6% interest has been secured by the  Minerals Income Investment Fund and an additional 3% in the Australian listed holding company together with other benefits like the establishment of a refinery and the sale of by-products domestically are unprecedented and in the best interest of Ghana.

But Atik Mohammed feels the agreement isn’t transparent and as a result, he is sending a petition to Parliament to scrutinize it when it is laid for ratification.

He argued that the royalty rate agreed on between government and Barari DV Ltd is unlawful.

“It’s not protected by any law…What that implies is that there could be future agreements where the royalty rate will not be 13 percent [sic] because it is on the discretion of the Minister,” he exclaimed in his submissions on Peace FM’s “Kokrokoo” show Thursday morning.

The former PNC General Secretary also opposed the 13% free carried interest which the authorities have negotiated for Ghana saying “we cannot rely on the negotiation skills of a Minister to determine how much carried interest we should have in lithium”.

He noted; “This (lithium) is the future. It is going to replace oil, so we can’t be relying on his negotiation skills. There ought to be a law which tells that when it comes to lithium, this is government’s carried interest.”

Atik therefore insists this lithium agreement should be abolished as, to him, it leaves a lot to imagination.

“As for this mining lease in its current form, we must get rid of it,” he asserted.