Samuel Abu Jinapor, the Minister for Lands and Natural Resources has argued that Ghana got the best from the controversial lithium deal.
He said the country will gain significant advantages from the Lithium deal between the Ghanaian government and Barari DV Ghana Limited.
Addressing a press briefing on Ghana’s First Lithium Contract, Terms, Benefits and the Way Forward at the Ministry of Information, Mr Jinapor disclosed that the execution of the contract will give Ghana 10 per cent in the form of royalties.
He indicated that the expected 10 percent royalties will be one of the highest in the country’s mineral exploration history.
“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 that the government has also secured 19 percent state participation in Barari DV Limited, the mining company in the contract which is projected to rise 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.
“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.
“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.”
Lithium, a critical component in batteries used in electric cars, is in great demand, and prices have skyrocketed, sparking interest in projects around Africa.Read Full Story