Atlantic Lithium Transaction Best For Ghana – Lands Minister

Minister of Lands and Natural Resources, Samuel Abu Jinapor, has squashed claims that the 15-year mining lease to Barari DV Ghana Limited, a subsidiary of Atlantic Lithium Limited, would not benefit Ghanaians and the country at large.

According to him, the deal was well scrutinized and, therefore, best for Ghana.

In a press release sighted by GhanaWeb Business, the minister denied claims that Atlantic Lithium Limited would commence operations in the first quarter of 2024.

He pointed out that all laws and regulatory permits regarding the exploitation of this critical mineral would be strictly adhered to.

Mr Jinapor’s comment comes after a section of the public and the Minority in Parliament raised some concerns about the transaction and requested that the agreement be laid before parliament for scrutiny.

“The Ministry welcomes the public interest and intense scrutiny of transactions for the exploitation and management of the natural resources of our country, as this is the best way of ensuring that these minerals inure to the benefit of the Ghanaian people.

The Ministry, therefore, wishes to reiterate and re-emphasise the circumstances and processes leading to the grant of the mining lease and how the State stands to benefit from this transaction,” part of the release read.

It further said, “As always, the Ministry will avail itself to the procedures of Parliament during the ratification process, and will be more than ready to justify and/or clarify all the terms agreed to, if necessary.”

“The Ministry of Lands and Natural Resources, under the distinguished leadership of President Akufo-Addo, continuous to assure the general public of its unflinching commitment to the efficient, effective and sustainable exploitation and management of the natural resources of our country, in the spirit of transparency, anchored on integrity and utmost good faith, for the benefit of the Ghanaian people,” it added.

Government of Ghana granted a 15-year mining lease to 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 project has been pegged at $250-million.

The Minister of Lands and Natural Resources, Samuel Abu Jinapor, signed the 15-year lease agreement over an area of approximately 42.63 square kilometres with the company in Accra on October 19, 2023.

He explained that per the mining lease which was in line with the country’s Green Minerals Policy, there had been an increase in royalties rate from the standard five percent to 10 percent.

He added that there had also been an increment in the state’s free carried interest from 10 percent to 13 percent.

Mr Jinapor further said government, through the Minerals Income Investment Fund (MIIF), would acquire an additional six percent shares in the mining company and 3.06 per shares in the holding company, which had been listed on the Australian and London Stock exchanges.

It would be recalled that on July 13, 2022, the Lands and Natural Resources Minister, on behalf of President Akufo-Addo presented a policy statement on the development and management of the green minerals to parliament.

The document was anchored on guaranteeing their exploitation benefitted Ghanaians.

Subsequently, he said, the policy was submitted to Cabinet, which after considerable debate and critique, approved on July 27, 2023.

Some of the key features in the policy include an increase in royalty rate, increase in Ghanaian participation in all green mineral operations to a minimum of 30 percent, enhanced local content and local participation, including listing on the Ghana Stock Exchange; and value addition and beneficiation.

Based on those policies, the Minister said the government entered negotiations with Atlantic Lithium.

 

 

 

 

Source: www.ghanaweb.com