Former Chief Justice of the Republic of Ghana, Sophia Akuffo has said that the lithium lease that the government recently signed is incomplete without ratification by parliament.
In her legal view, this particular transaction ought to have been sent to Parliament for approval.
“My legal view is that it is a transaction that requires ratification, it is not complete. This is a document, it is signed and sealed and delivered but it is a deal that has to be ratified by a named authority, that is the Parliament of the Republic of Ghana,” she said while speaking as a Distinguished Scholar of the Institute of Economic Affairs (IEA) in Accra on Tuesday, November 28.
Currently, African countries that are mining lithium export the mineral in its raw state.
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 the mining of this mineral. Speaking at a short ceremony to sign a mining lease for Barari DV Ltd., the Minister for Lands and Natural Resources, Samuel Abu Jinapor, said government took a decision not to treat this mineral the same way the other minerals have been treated.
It was, therefore, necessary to put in place a special policy for the exploitation and management of this mineral before granting any mining lease. He said after series of consultations, Cabinet approved a policy for the exploitation and management of green minerals including lithium, and the mining lease granted the company, incorporates the policy approved by Parliament.
“The Lease we are signing today differs from our standard Mining Lease, in that, it incorporates the agreed terms we have concluded with the company, based on the Policy approved by Cabinet,” the Minister explained.
Mr. Jinapor said the agreed terms give Government and the people of Ghana greater value in the mining of this mineral.
Giving some highlights on the lease, he said royalty rate has been increased to 10 percent from the standard 5 percent, and the State’s free carried interest in the mining operation has been increased from 10 percent to 13 percent.
In addition to the free carried interest, government, through the Minerals Income Investment Fund (MIIF), will acquire additional 6 percent in the mining operation, as well as a 3.06% in the Company’s parent entity, which is listed on the Australian and London Stocks Exchange.
The Minister said the Company would, also, be required to list on the Ghana Stock Exchange to ensure that Ghanaian entities, like pension funds, and individuals who want to invest in the this business can participate in it.
According to Mr. Jinapor, the Company will, also, pay 1 percent 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.
In the event that the Company is unable to establish a chemical plant, the Company will provide its lithium to any chemical plant established by third parties in the country. This will create more jobs and bring more development into the mining communities and the country at large. He said Government recognises the impact of mining on mining communities, and is committed to ensure that these communities, as well as Ghanaians who are, by law, the owners of these minerals, benefit from them.
He called on the company to adhere strictly to the mining laws of the country and the agreement reached with Government, and to ensure that they engage in responsible, sustainable and environmentally-sound mining practices.
The Executive Chairman of Atlantic Lithium Limited, Niel Herbert, thanked the Minister and Government for their cooperation in reaching this milestone. He said the Ewoyaa project is very important to the company, and the company is willing to work with Government to ensure the effective exploitation of this mineral for the benefit of Ghanaians.
Source https://3news.com/lithium-mining-contract-needed-to-be-ratified-by-parliament-former-chief-justice/
