Lithium deal: Your Agreement Is Void Until Parliament Ratifies It - Yaw Oppong To Barari DV

(Yaw Oppong)

The Director of the Ghana School of Law (GSL), Yaw Oppong, has raised a red flag regarding the recent Lithium deal between the government of Ghana and the Australian company Barari DV. Expressing caution, he emphasized that the agreement cannot be enforced until it is presented to Parliament and ratified. During an interview with Citi FM on Thursday, December 14, he urged Parliament to engage stakeholders before giving endorsement to the deal.

Related To This: NDC Says Lithium Deal Is Not What Ghana Needs, Calls For Reevaluation And Equity

According to Mr. Oppong, it is crucial for the investors to understand that the mere act of signing the agreement does not make it effective. They should recognize that until it receives approval from Parliament, the agreement holds no weight. He underscored the importance of such discussions and encouraged stakeholders to participate in the process, asserting that this would lead to better understanding and potentially prevent future complications.

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The pressure is growing on the government to reassess the lithium agreement, amid mounting concerns about the fairness of the deal for Ghana. Public discourse revolves around worries regarding resource exploitation and the perceived lack of adequate benefits for the country. These concerns have spurred calls for transparency and equity in the agreement.

Related To This: Lithium Contract Is Best For Ghana - Minerals Commission

Prominent figures such as former Chief Justice Sophia Akuffo and seasoned private legal practitioner Sam Okudzeto have voiced their opposition to the deal. In particular, the former Chief Justice likened the current contract to colonial-era and Guggisberg-type arrangements, expressing strong disapproval.

The $250-million project, set to be located in Ewoyaa, Mfantseman Municipality in the Central Region, is expected to kick off production in 2025. Notably, the deal incorporates a 10% royalty and 13% free carried interest for the state, surpassing the percentages found in other mining agreements, which stand at 5% and 10% respectively.

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