The National Democratic Congress (NDC) has articulated its firm opposition to the lithium mining agreement between the government and Barari DV, reflecting its stance that the deal is not in the best interest of the country. Sammy Gyamfi, the National Communications Officer of the party, expressed these concerns in a detailed statement issued on Wednesday, criticizing the terms of the agreement and emphasizing the need for a more favorable arrangement given the strategic significance of the resources at stake.
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The NDC's critical assessment of the partnership between the government and Atlantic Lithium of Australia underscores a fundamental disagreement with the government's unwavering endorsement of the deal. The party has characterized this endorsement as a celebration of mediocrity and has urged a rejection of the arrangement, citing its perceived adverse implications for Ghana.
The party spotlighted various concerns, particularly pointing out the perceived weakness in the requirement for the establishment of a local chemical plant to process Ghana’s lithium resources. Furthermore, the NDC questioned the choice of a fixed royalty rate, a basis for royalty payment, suggesting the adoption of a flexible range similar to the system employed by Chile with varying rates based on specified variables.
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Echoing the party's reservations, the NDC has advised Parliament against ratifying the agreement when presented, asserting that pertinent issues, including the absence of a feasibility report and the mandatory local processing of lithium resources, need to be satisfactorily addressed. The party emphasized that the agreement's ratification should not be considered until these critical concerns are effectively resolved in the best interest of the nation.
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The intensified pressure on the government to reassess the lithium deal arises amid escalating apprehensions that the country may not be obtaining equitable terms. Public discussions center on potential resource exploitation and the perceived inadequacy of benefits afforded to Ghana, prompting widespread calls for heightened transparency and equitable negotiations.
Noteworthy figures, such as former Chief Justice Sophia Akuffo and seasoned legal practitioner Sam Okudzeto, have openly voiced their opposition to the deal, citing concerns about the agreement's parallel to unfavorable historical arrangements and underscoring the necessity of ensuring equitable benefits for the nation.
The $250-million lithium project, to be established in Ewoyaa, Mfantseman Municipality in the Central Region, is projected to commence production in 2025. Notably, the agreement incorporates a 10% royalty and 13% free carried interest for the state, a notable increase from existing rates in other mining agreements.
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