Former Minerals Commission CEO Tony Aubyn shares thoughts on Ghana’s lithium deal
After a careful analysis of the recent agreement for the development of our lithium resources in Ewoyaa in the Central region of Ghana, I have come to the conclusion that Ghana failed to take advantage of the current importance and global demand for lithium.
The increase in royalty rate and free carry interest announced by government pale into insignificance if one considers the current and possible future global demand for the commodity.
It is noteworthy that countries like Mexico and Australia have rightly elected to develop their lithium and other critical minerals for 100% or majority interest due to the global importance and forecast demand for the commodity.
Australia has recently directly invested 4 billion into the development of same. In fact most countries are not looking to rely on existing mining and minerals contracts to deal with critical minerals, they are creating whole new frameworks for dealing with them.
In the recent case of Ghana, Apart from the opaqueness with which this new mineral deal has been negotiated, the current marginal increase in the existing rates of benefit sharing for Lithium is nothing more than cosmetic and tokenistic.
Lithium and the family of critical minerals are now so important (important than the hydrocarbons and gold) that it was an opportunity sent from heaven for Ghana to redeemed itself from the shackles of existing postcolonial mining framework to one that is responsive to current global and local situations
In short, given the criticality and present global demands for Lithium and other critical minerals, our present agreement is a lost opportunity to exact optimal benefit for Ghana, simpliciter.
Did Ghana Parliament have a chance to read and approve the contract? I think it was a bad contract indeed to take 13% when in fact Ghana could have borrowed the money from the public as shareholders in the Ghana Stock Market!