To make sure that Ghana receives the “biggest share” from the mining of its lithium deposit, several religious leaders have urged for an urgent review of the agreement between the government and Barari DV Limited.
At a conversation organised by the Institute of Economic Affairs (IEA) in Accra on Monday, the leaders—representing a variety of faith-based organizations—demanded a change from the payment of royalty for the use of Ghana’s natural resources to governmental ownership of the resource.
They said that since all of Ghana’s mineral resources belonged to the people, any deal should be drafted to give the State a bigger share at the expense of the people.
Among the religious leaders are world-renowned Evangelist and Economist Dr. Lawrence Tetteh, The Most Reverend Dr Paul Kwabena Boafo, Presiding Bishop of the Methodist Church Ghana, and Sheikh Aremeyaw Shaibu, spokesperson for the National Chief Imam.
The rest are: Alhaji Maulvi Bin Salih, Ameer and Missionary, Ahmadiyya Muslim Missions, Rev. Dr Cyril G.K. Fayose, General Secretary, Christian Council of Ghana, and Rev. Dr John Kpikpi, Founder, City of God Church.
On October 19, 2023, the Ministry of Lands and Natural Resources and Barari DV Limited, a division of Atlantic Lithium Limited, signed a lease for the mining of lithium in Ewoyaa, Mfantsiman Municipality, Central Region.
According to the Agreement, the State will have a carried interest of 19%, with the opportunity to increase that percentage to at least 30% by the conclusion of the contract.
In addition to a 13 per cent royalty and a 35 per cent corporate income tax, the corporation must create a refinery to process lithium locally before exporting it and contribute one per cent of its earnings to a Community Development Fund.
Nevertheless, with the signing of the Agreement, some civil society organisations and high-profile personalities, including the IEA have raised red flags over the appropriateness of the deal.
At a meeting with Religious Leaders on Monday, the IEA maintained that the deal in its current state would not serve the interest of the country.
Madam Sophia Akuffo, a former Chief Justice, and Distinguished Scholar at the IEA, said the structure of the current deal indicated that the country would only derive value from the raw material and miss out on the real value along the processing value chain.
“It is not about the figures, It is about the model, the framework, and the principle to maximise the benefit from the natural resource. We believe that there is a best way and it is important to examine other ways,” she said.
Dr Tetteh expressed concern over the inability of the State to own its natural resources and rallied the religious leaders to form a “united front to push for a better deal with the exploitation of the country’s lithium resource.
“We must come together and explore measures to stop this deal,” he said.
Most Rev. Dr Boafo said the country should earn the biggest share from its lithium resource and expressed worry that communities in mining areas remained poor after decades of mining in those areas.
“We cannot sit and allow our lithium resource to go down the drain. We should take the agreement and look at it critically,” he said.
Sheikh Aremeyaw called for things to be done differently in a manner that would impact the lives of Ghanaians.
“Ghana must gain the biggest advantage in the lithium deal,” he said.
Rev. Dr Fayose appealed to the institutions of the State to always put the interest of Ghana first in the discharge of their duties.
At the meeting, the religious leaders agreed to petition the Presidency, Parliament, and other relevant bodies on the lithium deal and asked the IEA to prepare a resolution from the meeting.
