The Minister of Lands and Natural Resources, Mr Samuel Abu Jinapor, Thursday assured Ghanaians that government will not allow the export of lithium in its raw state.
For that reason, he said, the Government had infused in the lithium agreement between it and Barari DV Ghana Limited a clause that ensure the retention of a significant part of the mining value chain locally.
Addressing a new briefing on Ghana’s first lithium contract, terms, benefits and the wayforward, Mr Jinapor insisted that the Lithium Mining Lease included a requirement for the establishment of a mining refinery to process lithium locally.
That, he said, would ensure the provision of the Lithium by-products to the local industries, therefore, the decision to process the mineral was in the best interest of the State.
The Minister listed some benefits the country would get from the implementation of the Lithium deal, noting that, the execution of the contract would give Ghana 10% royalties, which is highest in the country’s mineral explo
itation history.
The government, he said, also negotiated 19 percent state participation in Barari DV Limited, and projected to scale up to 30 percent by the end of the contract.
‘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’.
The Minister re-affirmed that the lithium contract was in the ultimate interest of all Ghanaians.
Mr Martin Kwaku Ayisi, the Chief Executive Officer, Minerals Commission pointed out that the criticisms coming from some individuals and CSOs on the deal were borne out of ignorance and failing to thoroughly read the agreement.
He noted that many of the concerns raised were based on inaccurate assumptions and unsupported assertions.
Mr. Ayisi explained that the $250 million project, located in Ewoyaa.in the Mfantseman Municipality of the Central Region is set to commenc
e production by 2025.
The Agreement includes a 10% royalty and 13% free carried interest by the state, surpassing the existing 5% and 10%, respectively, for other mining agreements.
He noted that the Barari DV Ghana Limited was also required to contribute 1% of its revenue to a community development fund for the upliftment of the mining area.
Mr. Edward NanaYaw Koranteng, Chief Executive for Minerals Income Investment Fund (MIIF), spelt out some financial benefits to Ghanaians saying MIIF identified opportunities of undervalued share at the time of closing the transaction with the locked in price of usd per share, and intrinsic value ranging of US$1.25 to US$1.9 per share.
‘MIIF has already made a 31% gain in its planned investment in the lithium deal’, he added.
Source: Ghana News Agency