Ghana has granted a 15-year mining lease to Barari DV Ghana Limited, a subsidiary of Atlantic Lithium Limited, to begin the construction and mining of lithium at Ewoyaa in the Mfantseman Municipality of the Central Region. This mineral is one of the main components used in the production of lithium-ion batteries, which are being promoted as a substitute for fossil fuels, as the world continues to battle with climate change.
The granting of the mining lease followed the completion of prospecting and feasibility studies by the company, as well as a series of negotiations between the government and the company. The lease incorporates new and enhanced terms intended to ensure that the country benefits optimally from this mineral. This includes an increase in royalty rate, state and Ghanaian participation, as well as value addition to the mineral mined.
Parliamentary Approval
The Minister of Lands and Natural Resources, Samuel Abu Jinapor, has hinted at seeking parliamentary approval for the 15-year mining lease with Barari DV Ghana Limited before commencement of mining of lithium at Ewoyaa in the Mfantseman Municipality of the Central Region. He stressed that approval by Parliament is needed before the contract becomes fully valid. He said this at a press conference in Accra on Thursday, December 7 where he justified the agreement.
It is recalled that Former Chief Justice of the Republic of Ghana, Sophia Akuffo said the lithium lease was incomplete without ratification by Parliament. In her legal view, this particular transaction ought to have been sent to Parliament for approval.
“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,” said Samuel Abu Jinapor. 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."
Green Energy Transition
The granting of this mining lease is a significant step towards Ghana's green energy transition. Emissions from the burning of fossil fuels by internal combustion engines have been identified as one of the major contributors to the climate crisis. To deal with this, global leaders are promoting a green energy transition, to progressively limit, and ultimately, eliminate carbon emissions.
Already, some countries have passed laws to phase out vehicles that use fossil fuels. This has created an emerging market for the battery industry, and minerals required for the production of batteries, referred to as green minerals or critical minerals.
Lithium Exploration in Ghana
Currently, African countries that are mining lithium export the mineral in its raw state. However, Barari Ltd commenced exploration for lithium in Ghana in 2017 and discovered high-grade lithium in commercial quantities in Ewoyaa. Geological investigations also show deposits in various parts of the country, from the south to the north, predominantly around Cape Coast, Kumasi, Sunyani, Bole and Wa. However, the country is yet to commence the mining of this mineral.
Lease Details
Earlier, while speaking at a short ceremony to sign a mining lease for Barari DV Ltd., Mr Abu Jinapor said government took a decision not to treat this mineral the same way other minerals have been treated. It was therefore necessary to put in place a special policy for the exploitation and management of this mineral before granting any mining lease.
“The Lease we are signing today differs from our standard Mining Lease, in that it incorporates the agreed terms we have concluded with the company, based on the Policy approved by Cabinet,” said Mr. Jinapor.
The agreed terms give Government and the people of Ghana greater value in the mining of this mineral. With this new mining lease, Ghana is poised to become a significant player in the global green energy transition.
(This article is sourced from 3news.com and curated by Belinda Bentle | Mydailyreports24)
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