In an unexpected twist, the Jinapor brothers, John and Samuel, active figures in Ghana’s political arena, find themselves in a heated debate over the details of Ghana’s agreement with Barari DV for lithium mining in the country.
John Jinapor, affiliated with the National Democratic Congress (NDC) and part of the Minority in Parliament, insists that the government should present the specifics of the Barari DV agreement before the House for thorough scrutiny and approval, siding with notable figures, including the Institute of Economic Affairs (IEA) and former Chief Justice, Sophia Akufo, who have criticized the contract as colonial and reminiscent of the Guggisberg era.
On the other side, Samuel Abu Jinapor, the Minister of Lands and Natural Resources, associated with the governing New Patriotic Party (NPP) and a member of the Majority in Parliament, defends the lithium contract, asserting that it is in the best interest of all Ghanaians.
He deems the comments by Justice Sophia Akuffo on Ghana’s Lithium deal, as unfortunate.
Concerns have arisen about the mining agreement signed on October 20, 2023, between Ghana and Barari DV Ghana Limited, a $250-million project located in Ewoyaa, Mfantseman Municipality in the Central Region, set to commence production by 2025.
The deal includes a 10percent royalty and 13percent free carried interest in the state, exceeding the existing 5percent and 10percent, respectively, for other mining agreements.
But John Jinapor, the Member of Parliament (MP) for Yapei Kusawgu in the Savana Region and also the Ranking Member on the Mines and Energy Committee, speaking in Parliament yesterday Thursday, said, “I want to make it loud and clear and succinct and explicit that the agreement between the government of Ghana and Barari should be laid before Parliament without delay.”
He further noted, “And let me assure the people of Ghana that the minority will not let you down. We will scrutinize the agreement. We will not allow this agreement to be rushed through. We would seek the guidance, the involvement of civil society; we will speak to important personalities, including former Chief Justice Sophia Akuffo, who has been vocal on this lithium agreement.”
He added that the government has also secured a 19 per cent state participation in Barari DV Limited, projected to scale up to 30 per cent by the end of the contract.
“We have already secured 19 per cent state participation in this mining company with the requirement to scale it up to a minimum of Ghanaian participation through listing on the Ghana Stock Exchange for shares to be made available to Ghanaians and Ghanaian entities.”
Speaking at a press conference yesterday over the same matter, Samuel Jinapor, the younger of the two brothers and MP for Damongo refuted Sophia Akuffo’s claims that the government had not secured the best possible deal for Ghana.
He highlighted the unprecedented 10% royalty rate, the 19% state participation in Barari DV Limited, and the inclusion of a clause mandating the establishment of a lithium refinery within Ghana as evidence of the government’s commitment to maximizing the benefits of the project.
“Suffice for me to point out that it is the first time in the history of our country that we have successfully negotiated for 10 per cent royalties for any mineral which is one of the highest for the exploration of any mineral across the world.”
He added that the government has also secured 19 per cent state participation in Barari DV Limited, the mining company in the contract which is projected to rise to 30 per cent by the end of the contract.
“We have already secured 19 per cent state participation in this mining company with the requirement to scale it up to a minimum of Ghanaian participation through listing on the Ghana Stock Exchange for shares to be made available to Ghanaians and Ghanaian entities.”
The Chief Executive Officer for Minerals Commission, Martin Ayisi, also joined the fray pointing out that the critical statements made by some individuals on the deal stem from a lack of thorough reading of the agreement, noting that many of the concerns raised are based on inaccurate assumptions and unsupported assertions.
Mr Ayisi explained that the $250 million project includes a 10% royalty and 13% free carried interest by the state, surpassing the existing 5% and 10%, respectively, for other mining agreements.
He noted that Barari DV Ghana Limited is also required to contribute 1% of its revenue to a community development fund for the upliftment of the mining area.
Mr Edward NanaYaw Koranteng, Chief Executive for Minerals Income Investment Fund (MIIF), also spelt out several financial benefits to Ghanaians, saying MIIF identified opportunities for undervalued shares at the time of closing the transaction with the locked-in price of USD per share, and intrinsic value ranging from USD 1.25 to USD 1.9 per share.
“MIIF has already made a 31% gain in its planned investment in the lithium deal,” he added.
Despite the spirited defence, former Chief Justice Sophia Akuffo remains adamant that the Lithium agreement is not the best for Ghana, expressing concerns about potential undue benefits influencing perceptions of the deal. She advocates for exploring alternative extraction methods beyond a lease agreement, such as joint ventures and service contracts.
In her view, the only way some people will say it is good for the country is because someone is going to have undue benefit from the agreement.
“People’s undue benefits must be floating around somewhere that is why somebody will find this a perfect, wonderful lease agreement. There are all forms of extraction methods which are much better. A lease is not necessarily the best methodology, there are so many other best methodologies.
“There is a joint venture, there is a service contract and even a service contract of many different permutations. This deal is not the best for Ghana,” She said in an interview on TV3.
