Lithium deal not the best for Ghanaians - Kwesi Pratt argues

Seasoned Journalist, Kwesi Pratt Jnr. has rubbished Ghana's 10 percent royalties in the lithium deal with 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 emphasized that the government has also secured a 19 percent State participation in the mining company expounding "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".

Some experts and commentators have hailed the government for this deal but to Kwesi Pratt, the 10% royalties is nothing but a figure quoted to sound good in the heads of Ghanaians.

He argued that the 10 percent, in reality when mining of the lithium commences, won't be as beneficial to Ghana as purported by the sector Minister.

He cited Niger's uranium renegotiation deal with France explaining how the country negotiated for 12 percent royalties but ended up reaping a paltry sum from the deal.

Mr. Pratt voiced his dissent to the deal asking, "even in calculating the payment of royalties and so on, what methods are we using in order to ensure we avoid the process of the use of what they call 'smart accounting' which makes nonsense of the absolute figures?".

He also trivialize Ghana's representation on the Board of Atlantic Lithium Ltd which is aimed at ensuring the company honors its end of the deal.

"Representation on the board does not necessarily guarantee equity. It does not guarantee us that our interest will be pursued," Mr. Pratt asserted.

Kwesi Pratt delivered these comments while contributing in a panel discussion on Peace FM's "Kokrokoo" morning show.