Dr Ishmael Dodoo urges innovative financing for green minerals prospecting in Ghana
African Human Development Expert formerly with the United Nations Development Programme (UNDP) and Executive Vice President of CO2 Capital Africa Development, Dr Ishmael Nii Amanor Dodoo, has stated that Government must find innovative financing schemes to raise funds to finance the prospecting of critical green minerals to be able to have higher bargaining power when conducting agreements with mineral exploration companies.
His assertion is based on the 10% royalty rate and 13% free carried interest rate negotiated by the Government in the recent lithium mining lease deal between Government and Barari DV – subsidiary of Atlantic Lithium.
He made the assertion speaking during the NorvanReports’ and Economic Governance Platform (EGP) X Space Discussion on the topic, “Voices from the Ground: Local Perspectives on Lithium Mining In Ghana”.
According to him, given the recent discovery of lithium, Ghana is likely to discover green minerals in large quantities going forward and as such must have a national plan on how to use and benefit from the minerals.
“Ghana is likely to discover more of these strategic resources in large quantities and so we need to be strategic on how to use and benefit from them. We need to have a national plan on what to do with these minerals,” he remarked.
Speaking on the deal with Barari DV, Dr Ishmael Dodoo averred that as a country, we learn from other countries that have created better frameworks for the development of their green minerals.
“The lithium deal is completely out of touch and Ghana should not engage it because it does not give Ghana value for money and also does not position Ghana to participate in the next digital revolution.
“The deal underscores the fact that we have not been innovative in our thinking. Can we then learn from other countries to properly structure our minerals agreement and earn more,” he stated.
The lithium mining lease, granted for 15 years to Barari, a subsidiary of Atlantic Lithium Limited, includes a 10% royalty and 13% free carried interest by the state, surpassing the existing 5% and 10%, respectively, for other mining agreements.
The mining lease is expected to be ratified by Parliament in the first quarter of 2024.
