The Director of Research on the Institute of Economic Affairs (IEA), Dr John Kwakye, has advised the federal government to take its time to make sure that Ghanaians get a great deal within the Liithium lease that it signed.
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Until the nation will get a great deal, he mentioned the mineral useful resource needs to be left to stay within the soil.
“Why is the Minister and his bosses rushing with the lithium lease? We want enough time to get the best lease for Ghana. Until then, the lithium can stay underground and the Minister can exit office,” he wrote on his X platform whereas reacting to a remark by the Minister of Lands and Natural Resources Samuel Abu Jinapor who assured Ghanaians that the federal government wouldn’t permit the export of lithium in its uncooked state.
Mr Jinapor mentioned the federal government had infused within the lithium agreement with Barari DV Ghana Limited a clause that ensures the retention of a big a part of the mining worth chain domestically.
Addressing a press briefing on Ghana’s First Lithium Contract, Terms, Benefits and the Way Forward on Thursday, December 7, Mr Jinapor insisted that the Lithium Mining Lease consists of provisions for the institution of a refinery and the availability of the lithium by-products to native industries, therefore the choice to course of lithium locallly was in the very best curiosity of the state.
The Minister enlisted vital benefits anticipated from the implementation of the Lithium deal, disclosing that the execution of the contract will give Ghana 10 p.c within the type of royalties which will likely be one of many highest within the nation’s mineral exploration historical past.
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He added that the federal government has additionally secured 19 p.c state participation in Barari DV Limited, which is projected to scale as much as 30 p.c by the top of the contract.
“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.”
Mr Abu Jinapor affirmed that the lithium contract is within the final curiosity of all Ghanaians.
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The Chief Executive Officer for Minerals Commission, Martin Ayisi, identified that the important statements made by some people on the deal stems from a scarcity of thorough studying of the agreement, noting that most of the issues raised are primarily based on inaccurate assumptions and unsupported assertions.
Mr. Ayisi defined that the $250 million venture, situated in Ewoyaa, Mfantseman Municipality within the Central Region, is ready to start manufacturing by 2025.
The deal features a 10 p.c royalty and 13 p.c free carried curiosity by the state, surpassing the prevailing 5 p.c and 10 p.c, respectively, for different mining agreements.
He famous that the Barari DV Ghana Limited can also be required to contribute 1 p.c of its income to a group development fund for the upliftment of the mining space.
Mr. Edward NanaYaw Koranteng, Chief Executive for Minerals Income Investment Fund (MIIF), spelt out quite a lot of monetary advantages to Ghanaians, saying MIIF recognized alternatives of undervalued share on the time of closing the transaction with the locked in worth of USD per share, and intrinsic worth ranging of usd 1.25 to usd 1.9 per share .
“MIIF has already made a 31% gain in its planned investment in the lithium deal,” he added.