The government, through the Ministry of Lands of Natural Resources, signed a lithium lease agreement with Barari DV Ghana Limited to explore and mine the mineral at Ewoyaa, a town in the Central Region.
Even though the deal has faced several public and organisational backlashes, here are some of the 10 outlined benefits Ghana stands to gain from the
The following details are made available via a summarised form of the deal, as shared by Legal Counsel to President Nana Addo Dankwa Akufo-Addo, Kow Essuman.
Exceptional Deal: 10% royalties, surpassing the 5% norm
Ghana will secure 10% in royalties from the lithium mining operations. This is 5% more than what Ghana gets from other minerals.
Empowering Ghana: 13% free carried interest above the standard 10%
Beyond the standard 10%, Ghana will receive an additional 13% free carried interest, empowering the country economically and ensuring a more favourable distribution of benefits.
Strategic Shares: 6% in Barari DV and 3% in Atlantic Lithium held by IMF
The International Monetary Fund (IMF) will hold 6% in Barari DV and 3% in Atlantic Lithium, providing Ghana with strategic shares that could foster international collaboration and financial stability.
Influence Voice: 2 board seats at Barari DV, 1 at Atlantic Lithium
Ghana stands to gain influence with 2 board seats at Barari DV and 1 at Atlantic Lithium, allowing the country to actively participate in decision-making processes.
Stock Market Representation: 11% to share reserves for Ghanaians on Ghana Stock Exchange
The lease agreement allocates 11% of the shares to be reserved for Ghanaians on the Ghana Stock Exchange, promoting local investment and participation in the burgeoning lithium industry
Community Commitment: 1% to Community Development Fund
An aspect of the deal involves allocating 1% of the profits to a Community Development Fund, ensuring that the Ewoyaa community benefits directly from the mining activities.
Fair Contribution: 35% Corporate Tax plus additional taxes
Barari DV is committing to a significant financial contribution, with a 35% corporate tax rate along with additional taxes, further enhancing the government's revenue stream.
Value-Added Policy: No raw lithium export, only refined products
To foster local industry and value addition, the agreement stipulates that only refined lithium products - not raw materials, can be exported, encouraging the growth of downstream industries.
Industrial Growth: Construction of a Lithium Refinery plant
The lithium lease agreement includes provisions for the construction of a Lithium Refinery Plant, signalling a commitment to industrial growth and local value addition.
Additional Benefits: Feldspar by-product for Ghana’s ceramic industry
In a move that could positively impact Ghana's ceramic industry, the mining operations are expected to yield a feldspar by-product, providing raw materials for local manufacturing.
NW/AE
Below is the full agreement Mineral Commission has with Barari DV
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File photo of raw lithium
