The Institute of Economic Affairs (IEA) has urged the government to halt the ratification of the current lithium mining agreement before Parliament, warning that the deal offers insufficient benefits to the state.
The call comes amid concerns from the Majority in Parliament that the 10% royalty rate agreed upon by the Akufo-Addo administration with Barari DV Ghana Limited may violate the Minerals and Mining (Amendment) Act, 2010, which sets a 5% royalty for such concessions.
Speaking at a press briefing on Tuesday, December 9, IEA Board Chairman Dr. Charles Mensa said mining agreements in Ghana have historically favoured investors, limiting the country’s ability to fully capture the economic value of its natural resources.
He added that this long-standing imbalance has contributed to Ghana’s repeated reliance on international support programmes, including agreements with the International Monetary Fund (IMF).
“Parliament must halt ratification of the Revised Lithium Agreement between Ghana and Barari, currently before parliament. This is critical because the agreement in its current form is not only a continuation of the colonial-type agreements Ghana has had in its gold and oil sectors, but fails to comply with the requirements of major international frameworks signed and ratified by Ghana.”
He added, “The United Nations General Assembly Resolution 1803 (1962), United Nations General Assembly Resolution 3281 (1974) and the African Charter on Human and Peoples’ Rights and Other Protocols all enjoin resource-endowed countries to exploit their resources for their benefit”.
“The IEA seeks a review of the lithium agreement to ensure greater state and local ownership and control within these international frameworks.
