The Minister of Lands and Natural Resources, Samuel Abu Jinapor, has indicated that by the end of the finalization of the lithium mining deal, Ghana will have a participation rate of 30% while Barari DV Ghana Limited will get 70%.

According to him, this is the first time in the country’s history that it has been able to negotiate 10% royalties in a minerals deal.

Ghana signed a 15-year lease agreement with lithium mining company Barari DV Ghana Limited, a subsidiary of Atlantic Lithium Limited, to commence the construction and mining of lithium at Ewoyaa in the Mfantseman Municipality of the Central Region.

The deal includes a 10% royalty and 13% free carried interest by the state, surpassing the existing 5% and 10%, respectively, for other mining agreements.

Addressing a press conference on December 7, 2023, the lands minister said “Suffice for me to point out that 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 the exploration of any mineral across the world.”

He added, “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.

“What this simply means is that when it is all over, Barari DV Limited, the holder of this mineral right of lithium, Ghanaian and state participation will be 30 percent, and foreign participation will be a maximum of 70 percent and this has never happened in the history of our country in respect of any mineral,” he emphasized.

Despite all the backlashes that this deal has received, Abu Jinapor said it has good prospects for the country.

“And for the first time in the history of our country, a mineral lease contains provision for the establishment of a refinery and that is value addition and appreciation and this is the first time,” he said.

SSD/NOQ

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