Pressure group, Mass Action for Sustainable Development in Africa (MASDA) has joined calls on government to reconsider the lithium deal with Barari BV.
MASDA has said the deal in its current form is not in the best interest of Ghanaians, unacceptable and must be reviewed.
The Executive Director, Atik Mohammed made these remarks in an interview on Asempa FM Ekosii Sen programme stating lithium represents the future.
In this regard, Atik has urged the government to position itself well to enable Ghana reap the benefits from this green mineral.
Additionally, he stated that the lease agreement stipulates in clause 20 that the company shall pay a royalty of 10% total revenue.
“Although section 25 of (Act 703) as amended, creates room for setting of royalty rates higher than the earlier 5%, it does not set a specific rate and the 10% rate is not covered by any law.
However, the amendment give the minister the power through an L.I regulation to state specifically what the royalty should be. So before this agreement, we should have had that regulation. What happens if the company says I cannot pay the 10%? That means we will have different royalty rates for different lease,” he said.
According to Atik, government is rushing through the deal without looking at the bigger picture and profits the country can gain in the future.
“Why the rush? What does it profit Ghana to rush into signing lease agreements only to be hurt in the long run?
Given that green minerals, especially lithium will become substitutes for oil in the not-distant future, one would expect wider engagements and consultations at least in the likeness of those that characterised the discovery of oil prior to the grant of any mining lease,” he added.
Ghana has granted a 15-year license to the company as the nation positions itself to tap into the multi-billion-dollar global industry.
The license enables it to start a lithium mine at a 42.6-kilometre site at Ewoyaa in the country’s Central Region.
However, there have been growing public criticism of the deal, with many Ghanaians expressing concerns that it does not adequately address the country’s long-term interests.
Critics have argued that, the deal grants Barari BV overly generous terms, including a low royalty rate and a long exploration period.
The government has however, defended the deal, arguing that it is in the best interest of Ghana, will attract much-needed investment and create jobs.
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