Editorial: Lithium must not end like gold, cocoa

Lithium is one of the main minerals used in the production of lithium-ion batteries. As the world continues to battle with climate change, lithium is being promoted as a substitute for fossil fuels. 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.

Currently, African countries that are mining lithium export the mineral in its raw state. The government has granted Barari DV Ghana Limited, a subsidiary of Atlantic Lithium Limited, a fifteen (15) year Mining Lease to commence the construction and mining of lithium at Ewoyaa, in the Mfantseman Municipality, of the Central Region.

According to information on the website of the Ministry of Lands and Natural Resources, the Lease incorporates new and enhanced terms intended to ensure that the country benefits optimally from this mineral. This includes an increase in royalty rates, state and Ghanaian participation, as well as value addition.

The granting of the Mining Lease follows the completion of prospecting and feasibility studies by the company, as well as a series of negotiations between the government and the company.

Barari Ltd. commenced exploration for lithium in the country 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 mining in these areas.

As a country, it comes as great news to discover such mineral resources at a time when they are being sought after to deal with the climate change crisis. It must be emphasised that lithium only adds to the list of mineral resources being mined in the country. It then begs the question of how those, including gold, have benefited the country and its citizens.

The Minister for Lands and Natural Resources, Samuel Abu Jinapor, speaking at the ceremony to sign the Mining Lease with Barari DV Ltd., said the government took a decision not to treat this mineral the same way the other minerals have been treated.

He said 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 words of the Minister allay the fears we have and believe the ordinary Ghanaian may have. The government should, however, walk the talk.

Since the 1900s, when Ghana started mining gold, and the 1970s, when oil production began, we have only boasted of having those resources in abundance, but it is evident that their benefits have been nothing less than shortchanging the state.

Giving some highlights on the Lithium Mining Lease, the Lands Minister said the royalty rate has been increased to ten percent (10%) from the standard five percent (5%), and the state’s free-carried interest in the mining operation has been increased from ten percent (10%) to thirteen percent (13%).

In addition to the free-carried interest, the government, through the Minerals Income Investment Fund (MIIF), will acquire an additional six percent (6%) in the mining operation as well as 3.06% in the company’s parent entity, which is listed on the Australian and London Stock Exchange.

According to Mr. Jinapor, the company will also pay one percent (1%) of its revenue into a Community Development Fund, to be utilised for the development of communities impacted by their operations, and will work to establish a chemical plant for the processing of lithium.

The Chronicle is very concerned about community development, such that the 1% should even be increased if possible.

Today, in Ghana, communities and towns that harbour resources like gold do not reflect the wealth of the minerals being mined on their lands. Lack of Schools, hospitals, and other basic amenities continue to be part of the sufferings of these people.

We have been privileged to have some briefings from the Minerals Commission on the Lithium Mining Lease, which sounds very promising considering the level of participation of Ghanaians in the exploitation and its related activities.

We commend the efforts the government is putting in place in this regard, but we await the parliamentary ratification of the Lease, with the hope that, in the end, the interests of the nation will be served.

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