The Institute of Economic Affairs (IEA) is urging the government to suspend the ratification of the existing lithium mining agreement currently before Parliament, cautioning that the arrangement does not offer adequate value for the state.
This appeal arises as the Majority in Parliament contends that the 10% royalty rate negotiated by the Akufo-Addo administration with Barari DV Ghana Limited violates the Minerals and Mining (Amendment) Act, 2010, which mandates a 5% royalty for such concessions.
During a press briefing on Tuesday, December 9, IEA Board Chairman, Dr. Charles Mensa, remarked that mining agreements have historically favored investors disproportionately, preventing the country from fully capitalizing on the economic potential of its natural resources.
He emphasized that this ongoing disparity has led to Ghana’s repeated reliance on international support programs, including interactions with the International Monetary Fund (IMF).
“Parliament must stop the ratification of the Revised Lithium Agreement between Ghana and Barari, which is currently under consideration. This is essential because the agreement, as it stands, not only perpetuates the colonial-style agreements that Ghana has experienced in its gold and oil sectors but also fails to meet the standards of significant international frameworks that Ghana has signed and ratified.
He further stated, “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 require resource-rich countries to utilize their resources for their own benefit.
“The IEA advocates for a reassessment of the lithium agreement to ensure enhanced state and local ownership and control within these international frameworks.
