Lithium deal with Atlantic Lithium includes 30% local ownership, Lands Minister says
“This lithium deal is fundamentally different from the colonial architecture for mining deals, and this is different because of two reasons.
Minister for Lands and Natural Resources, Samuel Jinapor, has said the the lithium mining agreement between Barari DV and Ghana, includes a 30% local ownership of Atlantic Lithium through the listing of the company on the Ghana Stock Exchange (GSE).
Addressing the media, Civil Society Organisations (CSOs) and mining experts at a Stakeholder Engagement on the Lithium Agreement organised by the Natural Resource Governance Institute (NRGI), the Minister noted that the requirement for Atlantic Lithium to list on the GSE for local ownership and participation is one of the reasons the current lithium agreement is the best for the country.
“This lithium deal is fundamentally different from the colonial architecture for mining deals, and this is different because of two reasons. One is that we have made provisions for indigenous participation in this mining enterprise and that’s never been the case before. Gold Fields is not listed on the Ghana Stock Exchange. Newmont is also not required to list on the Ghana stock and at the moment I’m still working with the Minerals Commission and other stakeholders to find a mechanism to have these companies listed on the Ghana Stock Exchange.
“This is the first time that by law, we have made a provision to insist that a company will have to list on the Ghana Stock Exchange. We already have 19% local participation and we have 11% more to go. So, this provision in my mind, is the number one factor that jettisons the colonial term of mining. The second one is value addition in which we have required Atlantic Lithium to set up a chemical refinery for the lithium extracted,” he noted.
Touching on the subject matter of Atlantic Lithium listing on the GSE, Managing Director of the Ghana Stock Exchange (GSE), Abena Amoah, during the GSE’s inaugural Ring the Bell for Climate Change initiative, stated that the GSE has been advocating for enhanced local ownership of Ghana’s mineral rights particularly with regards to green minerals such as lithium, resulting in the requirement for Atlantic Lithium to list on the local bourse.
Atlantic Lithium Limited, an Australian company, is listed on the Australian Securities Exchange (ASX) and the Alternative Investment Market (AIM) of the London Stock Exchange.
The company has, however, committed to a listing on the Ghana Stock Exchange (GSE), thereby promoting local participation.
The lithium mining lease, granted for 15 years to Barari, a subsidiary of Atlantic Lithium Limited, includes a 10% royalty and 13% free carried interest by the state, surpassing the existing 5% and 10%, respectively, for other mining agreements.
