In a statement signed and issued by the Ranking Member of the Committee, Kwaku Ampratwum-Sarpong, who is also the New Patriotic Party (NPP) Member of Parliament for Mampong, the Caucus accused the government of attempting to justify a reduction in the royalty rate from 10 per cent to five per cent, which would leave Ghanaians worse off.

The Minority Caucus noted that the NPP government had previously agreed to a 10 per cent royalty rate in October 2023, which was described as "mediocre" by the then-opposition National Democratic Congress (NDC), now in government.

 The Caucus questioned what had changed to warrant the reduction in the royalty rate, stating that the company's profits would still be substantial even with the higher rate.

The statement also highlighted inconsistencies in the government's approach, pointing out that previous agreements had secured higher rates, and accused the government of using propaganda and double standards to justify the deal.

Discontent

The Minority Caucus also expressed strong discontent with the government's decision to grant a mining lease to Barari DV, a Free Zone Company, describing the provisions for the establishment of a chemical plant as "very weak to say the least."

The caucus is questioning what has changed since the government previously criticised the deal, and is now adopting the same provisions.

The Minority Caucus said it was also concerned that the lease agreement lacks provisions that emphasise Ghana's control over the lithium mining value chain and benefits thereof.

“So, we ask, what new provision have they added to emphasise Ghana's control over the lithium mining value chain?" they queried, adding that “The caucus is also pointing out that the deal will not benefit Ghanaians, as Barari DV is a Free Zone Company with a 10-year tax holiday.”

The Minority Caucus demanded that the government reverse the royalty rate to 10 per cent, as previously agreed and accepted by the company.

They also urged the government to stick to its principles and ensure that the deal benefitted the Ghanaian people, rather than leaving them worse off.

“This Government cannot take the Ghanaian people for a ride," the caucus said, assuring the public that they will continue to hold the government accountable and fight for the welfare and well-being of the people.

Recall

In October 2023, the Government of President Akufo-Addo signed a mining lease agreement with Barari DV Ghana Limited for the exploitation of Lithium, but with enhanced terms, including a royalty rate of 10 per cent above the normal five per cent; free carried interest of 13 per cent above the statutory 10 per cent with additional Ghana participation of, at least, 30 per cent through the Minerals Income Investment Fund and list on the Ghana Stock Exchange.

The agreement also included a growth and sustainability levy of one per cent revenue and the establishment of a chemical plant to promote value addition.

The NDC opposed these terms, and in a press release dated December 13, 2023, described the 10 per cent royalty rate as “mediocrity.”