4th December 2023 9:35:34 AM
2 mins readThe Minerals Commission has reacted to criticism by some individuals over the lithium deal between the government of Ghana and Barari DV Ghana Limited.Key stakeholders, including the Institute of Economic Affairs (IEA) and former Chief Justice Sophia Akufo, have criticised the contract as colonial and Guggisberg-type, respectively.
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In a press statement on Monday, December 4, the Minerals Commission noted that such statements have been made because the "commentators have not read the agreement in its entirety.”The statement added that "as result, many of concerns are based on assumptions that are inaccurate and assertions that are not supported by facts or any data.
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"The Minerals Commission asserts that the lithium deal between the government of Ghana and Barari DV Ghana Limited is in the best interest of the nation."For the avoidance of doubt, the mining lease was granted for 15 years to Barari, which is the subsidiary of Atlantic Lithium Limited, an Australian company listed on the Australian Securities Exchange (ASX) and also on the Alternative Investment Market (AIM) of the London Stock Exchange.
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The lease covers an area of 42.63 Km2 in and around Ewoyaa in the Mfantseman Municipality of the Central Region."Meanwhile, the Minerals Commission has noted that it will organise a press conference on Thursday, December 7, at the Ministry of Information to shed more light on the lithium deal between the government of Ghana and Barari DV Ghana Limited.A mining agreement was signed on October 20, 2023, between Ghana and Barari DV Ghana Limited.
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The mining lease, granted for 15 years to Barari, a subsidiary of Atlantic Lithium Limited, an Australian company listed on the Australian Securities Exchange (ASX) and the Alternative Investment Market (AIM) of the London Stock Exchange, covers an area of 42.63 km² in and around Ewoyaa in the Mfantseman Municipality of the Central Region.
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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 by the state, surpassing the existing 5% and 10%, respectively, for other mining agreements.Barari DV Ghana Limited is also required to contribute 1% of its revenue to a community development fund for the upliftment of the mining area.
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While some, including statesman and business executive Sir Sam Jonah, have praised the government for securing better fiscal terms, sceptics, especially the IEA, remain cautious about the agreement.
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