Exploitation of Ghana's lithium resource should be transparent - Prof. Aryeetey

Professor Ernest Aryeetey, the Vice Chairman of the Natural Resource Governance Institute, has called for the involvement of all relevant stakeholders in negotiations for the exploitation of Ghana’s lithium resources.

This would ensure that the country derived the needed benefit from the resource.

Speaking at a stakeholder dialogue on the discovery of lithium within the context of energy transition in Accra on Friday, Prof. Aryeetey said the challenges and opportunities in the global surge for energy transition solutions called for transparency in the exploitation of the country’s lithium resource to limit avenues for corruption.

He encouraged the chiefs and people of the host communities to build their capacities in the industry and participate effectively in the negotiations.

Prof. Aryeetey also urged academic institutions to train students on emerging technologies to ensure effective local participation in the exploitation of the new mineral.

“…Agreements are usually shrouded in uncertainty and that provides a good incentive for corruption. How do you ensure that in our preparations of various agreements we will work with greater certainty and ensure that there is much more transparency?” he asked.

The dialogue was organised by the Institute for Energy Security (IES) in collaboration with the Africa Centre for Energy Policy (ACEP) and the NRGI.

The Minerals Commission 2021 confirmed the discovery of Lithium in Ghana at Ewoyaa near Saltpond in the Mfantsiman Municipality of the Central Region.

Lithium – one of the top 10 most expensive minerals in the world – can be used for the manufacture of batteries, heat-resistant glass, and ceramics, among other things.

According to the International Energy Agency (IEA), between 2017 and 2022, the global demand for lithium tripled due to a rise in demand for transition minerals to support the shift from fossil fuel to renewable energy in keeping with climate commitments.

Prof. Aryeetey said the country must take lessons from the damage caused by illegal mining activities and put proper measures in place to ensure that lithium is mined sustainably without damaging the environment.

He said the country should also not focus solely on exporting the new mineral but should build local capacity and reserve to support the realisation of its energy transition targets.

Dr Alex Ampaabeng, Senior Economic Analyst, NGRI, said Ghana’s beneficial ownership disclosure regime could be very crucial in ensuring transparency in deals in the national interest.

He said the country should begin to put in place stronger anti-corruption measures, including legislation and regulations, bilateral and multilateral partnerships, and trade agreements.

“We should identify corruption risks and mitigation plans in any energy transition mineral strategies, activities and operations,” Dr Ampaabeng said.

Nana Amoasi VII, Executive Director, IES said market transparency, environmental, social and governance standards must be prioritised in actions towards exploitation of transition minerals.

“It is well understood that organisations in the mineral extractive sectors cannot escape corruption risks, which infest practically every extractive sector at the various facet of development and every stage of the supply chain,” he said.