Accra: Dr. John Kpikpi, Presidential Aspirant for the Progressive Alliance of Ghana (PAG), has urged the government to halt the lithium agreement with Barari DV Ghana Limited and re-negotiate terms that will give Ghana 85 percent free carried interest, leaving foreign investors with only 15 percent. Speaking at a press conference in Accra on Monday, Dr. Kpikpi, a lecturer at the University of Ghana, described the current arrangement where Ghana secures only 13 percent free carried interest as 'not fit-for-purpose' and a betrayal of both present and future generations. He argued that such terms amounted to mortgaging the country's natural resources for 'a pittance that cannot build roads, schools, or eradicate poverty.'
According to Ghana News Agency, Dr. Kpikpi proposed that Ghana establish a joint venture company led by local mining experts to spearhead lithium extraction. He further suggested that the nation could delay mining until it is fully prepared to maximize benefits, saying, 'We must stop exporting raw ore but rather develop processing methods that will eventually lead to the manufacturing of lithium batteries, which are at the base of all electric vehicles.'
The lithium agreement has already been approved by the Cabinet and is currently before Parliament for consideration. The Minister of Lands and Natural Resources, Mr. Emmanuel Armah-Kofi Buah, presented a revised lithium mining agreement between the Ministry and Barari DV Ghana Limited to Parliament earlier this month. The revision was prompted by a sharp decline in global lithium prices, which fell from about $3,000 per tonne to around $630 per tonne, threatening the viability of the project.
Key highlights of the revised deal include the scope of mining, which covers lithium and associated minerals at Mankessim in the Central Region. Barari DV requested adjustments due to the global price slump, which has rendered many lithium projects worldwide unprofitable. The Minister explained that without revision, the company could not proceed with the old agreement.
The revised deal is projected to create employment opportunities for Ghanaian youth and sustain investor confidence despite market volatility. Mr. Buah stressed that the revision was necessary to keep the project alive in the face of global downturns, noting that 'almost every lithium project around the world has been halted' due to falling prices.
Parliament is expected to debate the revised agreement in the coming weeks. While the government insists the new terms are pragmatic given global market realities, voices like Dr. Kpikpi's highlight growing public concern over whether Ghana is securing a fair share of its strategic natural resources.