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Lithium Deal: 10% royalty is a celebration of mediocrity - NDC tells gov't

Politics

6 months ago
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The National Democratic Congress (NDC) says the Ghana-Barari DV lithium deal must be investigated after numerous public outbursts.

They believe the deal agreement is “not in the best interest of Ghana” in a statement explaining many reasons.

According to the party, Ghana will not benefit in any way from the exploitation of Lithium and other associated minerals in the Ewoyaa community of the Mfantseman Municipality of Ghana.

The NDC also seem shocked with government jubilation of 10% Royalty under the deal.

“It is important to make the point, that government’s boastful claim about securing a 10% Royalty under the deal, is a celebration of mediocrity.” A portion of the statement said.  

It further said “It is worthy of note, that the prevailing royalty rate of 5% was based on section 25 of the Minerals and Mining Act, 2007 (ACT 703), which provides for a royalty rate of not less than 3% and not more than 6%. This law was amended by the erstwhile NDC/Mahama government, as far back as 2015 by ACT 900, which has made the Royalty rate open-ended and subject to negotiations.  

“Also, the prevailing industry royalty rate of 5% relates to the country’s traditional minerals such as gold, bauxite etc. The Barari-Lithium agreement is the first deal for the exploitation of a Green Mineral in Ghana. Therefore, comparing the prevailing royalty rate of 5% to a 10% royalty rate for a Green Mineral like lithium, is an exercise in mediocrity.”

 

source: Theannouncergh.com