The University Teachers Association of Ghana, University of Ghana Branch (UTAG-UG), has issued a press release expressing concerns over the lease agreement between the Government of Ghana and Barari DV Ghana Limited for lithium mining at Ewoyaa in the Mfantsiman Municipality.
The press release highlights the importance of lithium as a vital element for rechargeable batteries, especially in electronic devices and electric vehicles (EVs). The estimated net worth of the lithium in the Ewoyaa field is emphasized to be substantial, considering the global demand patterns and market forces.
However, UTAG-UG raises alarm over the ownership structure outlined in the agreement, with the Government of Ghana holding only a 13% stake, while Atlantic Lithium and Piedmont Lithium collectively hold 81%. Concerns are also raised about the rush in signing the deal and the lack of parliamentary approval for certain aspects, such as the Minerals Income Investment Fund’s equity stake.
Moreover, UTAG-UG questions the decision to sell the mineral in its raw state (spodumene concentrate), potentially reducing its market value. The press release suggests that a more comprehensive approach to downstream processes could create high-income jobs and contribute significantly to Ghana’s economic development.
The association calls on the government to slow down the mining process and engage in nationwide public consultations to ensure transparency and public input. They also urge Parliament to rigorously scrutinize the deal and reject it in its current state if it fails to serve the interests of the Ghanaian people.
Read the full press release here
