Lithium Deal: NDC is only offering talks, no solution - Richard Ahiagbah

The Director of Communications of the New Patriotic Party, Richard Ahiagbah, has accused the National Democratic Congress of offering mere talk without presenting concrete solutions to the current lithium agreement the government signed with Barari DV.

According to him, NDC's discussions lack substance and fail to provide viable alternatives.

The government, in October 2023, signed an agreement with Barari DV to mine lithium ore in the Ewoyaa enclave in the Central Region.

The agreement has since been facing public backlash from experts and the opposition, NDC.

They argue that the deal was poorly negotiated and that Ghana can get more in terms of royalties and other benefits if the government explored other agreements such as the joint venture or the service agreement.

Speaking on Metro TV on Thursday, December 14, 2023, Richard Ahiagbah criticised the opposition party's rhetoric, indicating that their repeated claims of having a "better" solution are devoid of specifics.

“Everything the NDC has talked about is not a solution, it's talk. They keep saying something better but the question is what is better?

“What is before us, and the deal as has been agreed, is better than anything that has occurred in this country. So, what is better in their vocabulary? They have not spoken to anything,” he said.

The NPP's director of communications challenged the NDC's proposed solutions, particularly the joint venture and service agreement, arguing that these alternatives come with their own constraints.

Ahiagbah dismissed these suggestions as insufficient, urging the NDC to provide concrete and justifiable reasons for their stance.


He added that once the opposition is able to provide these solutions, there will be a conversation about the current agreement but until then, he believes what the government has signed, is the best.

“What the NDC is professing as the solution, i.e. the joint venture and the service agreement, have their own constrains. This is not a solution, they are just telling us what exists or what possible we can get. But I am saying that what do they think concretely we can get. They say one or the other, they should tell that service agreement is better and justify it. They should say the lease agreement is not better and show us why it is not better,” he added.

What stands to gain in the lithium agreement with Barari DV

Exceptional Deal: 10% royalties, surpassing the 5% norm

Ghana will secure 10% in royalties from the lithium mining operations. This is 5% more than what Ghana gets from other minerals.

Empowering Ghana: 13% free carried interest above the standard 10%

Beyond the standard 10%, Ghana will receive an additional 13% free carried interest, empowering the country economically and ensuring a more favourable distribution of benefits.

Strategic Shares: 6% in Barari DV and 3% in Atlantic Lithium held by IMF

The International Monetary Fund (IMF) will hold 6% in Barari DV and 3% in Atlantic Lithium, providing Ghana with strategic shares that could foster international collaboration and financial stability.

Influence Voice: 2 board seats at Barari DV, 1 at Atlantic Lithium

Ghana stands to gain influence with 2 board seats at Barari DV and 1 at Atlantic Lithium, allowing the country to actively participate in decision-making processes.

Stock Market Representation: 11% to share reserves for Ghanaians on Ghana Stock Exchange

The lease agreement allocates 11% of the shares to be reserved for Ghanaians on the Ghana Stock Exchange, promoting local investment and participation in the burgeoning lithium industry

Community Commitment: 1% to Community Development Fund

An aspect of the deal involves allocating 1% of the profits to a Community Development Fund, ensuring that the Ewoyaa community benefits directly from the mining activities.

Fair Contribution: 35% Corporate Tax plus additional taxes

Barari DV is committing to a significant financial contribution, with a 35% corporate tax rate along with additional taxes, further enhancing the government's revenue stream.

Value-Added Policy: No raw lithium export, only refined products

To foster local industry and value addition, the agreement stipulates that only refined lithium products - not raw materials, can be exported, encouraging the growth of downstream industries.

Industrial Growth: Construction of a Lithium Refinery plant

The lithium lease agreement includes provisions for the construction of a Lithium Refinery Plant, signalling a commitment to industrial growth and local value addition.

Additional Benefits: Feldspar by-product for Ghana’s ceramic industry

In a move that could positively impact Ghana's ceramic industry, the mining operations are expected to yield a feldspar by-product, providing raw materials for local manufacturing.

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