Ghana signs major lithium exploration deal
The government of Ghana has signed a major deal for the mining of lithium in the country. The move is geared towards developing the country’s mineral resources to ensure maximum possible benefits from the exploitation of the mineral.
The agreement authorises Barari DV Ghana Ltd, a subsidiary of Australia-based Atlantic Lithium Limited (A11.AX) to undertake mining operations efficiently in Ewoyaa in the Central Region of the West African country.
The 15-year lease, according to a statement signed by the Minister of Lands and Natural Resources Samuel Jinapor, “may be renewed from time to time in accordance with the Minerals and Mining Act 2006 (Act 703)".
The lease, upon implementation, will be laid before Parliament for ratification.
The deal is a significant leap towards development particularly because lithium which is considered the gold of the electrification world, will be able to boost areas like the production of batteries for electric vehicles in the country.
The mineral is also used for rechargeable batteries for phones, laptops and cameras.
The government of Ghana, through the deal, will be entitled to thirteen percent (13%) interest in the rights and obligations of the mineral operations of the Company “as free carried interest in respect of which financial contributions shall not be paid by the Government,” parts of the statement said.
The government is also expected to benefit from a royalty of ten percent (10%) of the total revenue earned from the sale of the minerals obtained from the lease area.
More importantly, the lands ministry has clearly outlined mining area specifications for the company’s operations to ensure that restricted and reserved areas are not abused or exploited.
