Lithium deal: Cabinet examined implications of all options – Abu Jinapor

The Minister of Lands and Natural Resources, Samuel Abu Jinapor, has once again defended the controversial Ghana-Barari Lithium deal, assuring Ghanaians that the government meticulously considered all options before choosing the current path.

Speaking on Point of View on Citi TV, Mr Jinapor emphasized that the chosen option addresses concerns about green minerals while remaining financially feasible.

He explained that the government rejected a cooperative approach due to a lack of resources and dismissed the option of new legislation due to its complexity and potential delays.

“Cabinet examined the implications of all the options and came to the conclusions that they did. Ewoyaa concession is just a drop in the ocean, and it’s the first transaction we are getting into. The idea of establishing cooperation was not attractive. We didn’t have sufficient resources to deposit. The second one which was to have legislative amendments and new laws was cumbersome, and it was going to take a lot of time, and resources.

He stressed, “The option which was chosen addresses or achieves the same objectives that certain establishing or enacting new laws would have done. The option which was chosen which is to amend the minerals mining policy, has meant that arising out of that policy, we are required to amend aspects or portions of the Minerals and Mining Act, which will serve the same purposes. That is why that option was decided upon. The government has been mindful, thorough, detailed and systematic in arriving at this point.”

The Lands and Natural Resources Minister also stated categorically that the government carefully negotiated the deal.

“In this lease, we have negotiated carefully and successfully agreed that Barari DV Limited will mandatorily list on the Ghana Stock Exchange. Indigenous participation will be a minimum of 30%, state participation is 19%,” he told host Bernard Avle.

CSOs including the Institute of Economic Affairs (IEA) and other stakeholders, have heavily criticized the government over the deal, arguing that Ghana will be short-changed if the deal is not properly scrutinised.

The minister welcomed concerns raised by CSOs on the deal.

“Those contributions, critiques, and proposals are all very welcome. It’s only as a result of us having an intense national discourse, that we can get the best for our country. The contributions of civil society organisations and other stakeholders are wholeheartedly welcomed.” he said.

The $250-million project, located in Ewoyaa, Mfantseman Municipality in the Central Region, is set to commence production by 2025.

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

 

 

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