The Mass Action for Sustainable Development in Africa (MASDA), led by Policy Analyst and Former General Secretary of the Peoples National Convention (PNC), Atik Mohammed, has called on the Parliament of Ghana to carefully consider the ratification of the lithium mining agreement with Barari DV Ghana Ltd.
The agreement, presented to Parliament by the Lands and Natural Resources Minister in July, has been under review by the Lands and Forestry Committee.
During a meeting with the Committee on Tuesday, September 3, 2024, stakeholders expressed concerns about the agreement, urging Parliament not to rush the ratification process. Atik Mohammed emphasized the importance of addressing fundamental issues within the agreement before moving forward.
“There seems to be a haste to get the entire agreement passed,” Atik Mohammed stated after his appearance at the Committee. “If you look at the concerns all the stakeholders have raised, it tells you that there are issues that need to be addressed before we can even think about signing this agreement.”
The government has praised the negotiated 13% royalty rate in the agreement, which exceeds the minimum 10% requirement, as a significant improvement over previous mining agreements in the country. However, Atik Mohammed argued that relying on negotiation skills alone is unsustainable. He called for the introduction of a Legislative Instrument to establish fixed royalty rates for critical minerals like lithium.
“The existing law allows for negotiation beyond the 10% carried interest rate, but this is not law; it’s simply negotiation,” Atik Mohammed pointed out. “Lithium is like our new oil, given the green transition. We should take our time to develop a fiscal and regulatory framework, just as we did when we discovered oil, to ensure long-term benefits for Ghana.”
He urged Parliament to prioritize creating a sustainable framework that would maximize revenue and address other concerns raised by stakeholders before ratifying the agreement.
Source: Clement Akoloh||parliamentnews360.com
