The National Democratic Congress (NDC) has strongly criticised President Akufo-Addo’s government for its steadfast support of the lithium deal with Atlantic Lithium of Australia.
It said it represents a celebration of mediocrity and should be rejected by Ghanaians.
In a press release issued on Wednesday, December 13, and endorsed by the National Communications Officer, Sammy Gyamfi, the NDC argued that the deal is not in the best interest of Ghanaians.
“More importantly, we think that the government should have opted for a flexible range of royalty rates, which takes into account the windfall profit of the company.
“This royalty arrangement has been adopted by Chile, which currently has a royalty rate range of 8% to 21% depending on certain variables,” an excerpt of the statement insisted.
“In a similar vein, the 10% royalty rate secured by the government could have been the baseline rate, subject to upward adjustment in cases of windfall revenue or profit by the company, if the government had negotiated properly.
The party advised Parliament not to ratify the agreement when presented before them.
“In the face of all these pertinent issues, particularly, the non-existence of a feasibility report and a mandatory requirement for the local processing of our lithium resources, the NDC is of the view, that the Ghana-Barari Lithium deal is not in the best interest of Ghana.”
“Thus, the ratification of the Mining Lease agreement executed by the Akufo-Addo/Bawumia NPP Government, should not even arise at this stage. It is our considered position, that Parliament should not consider the ratification of the Lease Agreement until all these pertinent issues are satisfactorily addressed in the best interest of Ghanaians,” the statement added.
Intensified pressure is urging government to reconsider the lithium deal amid growing concerns that Ghana may not be receiving a fair deal.
The discussions revolve around potential resource exploitation and perceived inadequate benefits for the country, fueling public discourse and calls for greater transparency and equity.
Prominent figures, including former Chief Justice Sophia Akuffo and seasoned private legal practitioner Sam Okudzeto, have voiced their opposition to the deal.
For the former Chief Justice, the current contract echoes a colonial and Guggisberg-type arrangement.
The $250-million project, situated in Ewoyaa, Mfantseman Municipality in the Central Region, is slated to commence production in 2025.
Notably, the deal incorporates a 10% royalty and 13% free carried interest for the state, surpassing the existing 5% and 10% in other mining agreements.
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