Development Minerals and the Energy Transition: Lessons from Ghana
In October 2023, the government of Ghana granted its first mining lease to Barari DV Ghana Limited (a subsidiary of Atlantic Lithium) to develop the Ewoyaa Lithium Project. Civil society and activists have put on glasses of scrutiny about the deal like never before. Albeit pending parliamentary ratification, the government touts Ghana’s stake in the Ewoyaa project as unprecedented in the country’s mining history. The government’s position is hinged on the agreement’s provision of 13% free state-carried interest and a 10% royalty rate, an increment from the usual 10% and 5% in existing mining leases. Furthermore, through the Minerals Income Investment Fund (MIIF), the government will acquire an additional 6% of the mining operation and 3.06% of the parent company listed on the stock exchanges in Australia and London.
However, scepticism abounds on how different Ghana’s first lithium project is from existing mining leases regarding the government’s interest, with diverse opinions expressing shared concerns and uncertainties. The differing views among legal and mining experts, political analysts and concerned citizens show how complex the issue is. ACEP has conducted a thorough fiscal examination of the project to separate facts from opinions and guide data-driven decision-making to ensure that the lithium extraction from the Ewoyaa deposits genuinely serves the interests and well-being of the people in Ghana.
At the Idea Generation Hub at the Alternative Mining Indaba (AMI) 2024, ACEP and partners seek to engage participants on the key findings from the analysis of Ghana’s lithium project and draw lessons that are applicable for optimal revenue mobilization from and community participation in critical mineral exploitation and development.