Gov’t rejects establishment of Ghana Lithium Mining Company; prioritizes value chain retention

In a recent press conference addressing concerns over the government’s contract with Barari DV Ghana Limited, the Minister of Lands and Natural Resources, Samuel Abu Jinapor, revealed that the establishment of a Ghana Lithium Mining Company is not deemed feasible.

Despite earlier considerations akin to entities like the Ghana Integrated Aluminium Development Corporation (GIADEC) and the Ghana Integrated Iron and Steel Development Corporation (GIISDEC), subsequent studies have demonstrated the impracticality of such an initiative.

Mr Jinapor explained that due to the current volume of lithium resources and the imperative to optimize the benefits of their exploitation, the government decided against creating a separate entity.

“Ladies and gentlemen of the press, it will be recalled that the policy statement presented to parliament last year considered the establishing of an entity along the lines of the Ghana Integrated Aluminium Development Corporation (GIADEC) and the Ghana Integrated Iron and Steel Development Corporation (GIISDEC), however, the volumes of the mineral we have currently and our quest to ensure optimal benefit for the exploitation of this mineral meant that that option was not feasible for several considerations,” he explained.

Instead, the government’s primary focus has been on retaining a significant portion of the lithium value chain within the country, a commitment reflected in the agreement with Barari DV Ghana Limited.

He underscored that, given the global context where only China possesses an end-to-end lithium value chain, Ghana aims to systematically construct the full value chain domestically in the future.

Despite this, he emphasized that raw lithium resources would not be exported, and the deal with Barari DV Ghana Limited includes provisions for the establishment of a refinery and the use of other linkages to support local industries.

Mr Jinapor assured the public that the government prioritized the interests of Ghanaians throughout the negotiation process for the lithium deal. He highlighted the meticulousness of the negotiations, stating that every aspect had been thoroughly considered, emphasizing that the agreed-upon terms are in the best interest of the citizens of Ghana.

“It has been months of thorough negotiations and hard work in respect of this transaction. Nothing has been agreed to casually, everything has been thought-through and everything has been worked out and all the options have been considered and what we’ve arrived at is in the interest of the good people of Ghana,” he said.