Tony Aubyn writes: Ghana’s Lithium deal is a lost opportunity to exact optimal benefit
After a careful analysis of the recent agreement for the development of our lithium resources in Ewoyaa in the Central region of Ghana, I have to the conclusion that Ghana failed to take advantage of the current importance and demand for lithium.
The increase in royalty rate and free carry interest announced by government pale into insignificance if one considers the current and possible future global demand for the commodity.
It is noteworthy that countries like Mexico and Australia have rightly elected to develop their lithium and other critical minerals for 100% or majority interest due to the global importance and demand for the commodity. Australia has recently directly invested 4billion into the development of same.
In fact most countries are not looking to rely on existing mining and minerals contracts to deal with critical minerals, they are creating whole new frameworks for dealing with them.
In the recent case of Ghana, apart from the opaqueness with which this new mineral deal has been negotiated, the current marginal increase in the existing rates of benefit sharing for Lithium is nothing more than cosmetic and tokenistic.
Lithium and the family of critical minerals are now so important (important than the hydrocarbons and gold) that it was an opportunity sent from heaven for Ghana to redeemed itself from the shackles of existing postcolonial mining framework to one that is responsive current global and local situations.
In short, given the criticality and present global demands for Lithium and other critical minerals, our present agreement is a lost opportunity to exact optimal benefit for Ghana, simpliciter.
About Tony Aubyn
Dr. Anthony Aubynn has over 20 years of Senior Management experience spanning the mining industry (both gold mining, oil and gas).
He has demonstrable management experience in both policy formulation and regulations as Chief Executive Officer, Ghana Minerals Commission; Chief Executive Officer of the Ghana Chamber of Mines; Human Resources and Corporate Affairs Management in his role as Director, Corporate Affairs, Tullow Ghana Limited; Head, Corporate Affairs and Social Development, Goldfields Ghana Limited; and Head of Human Resources and Local Affairs (Abosso Goldfields Limited).
Dr. Aubynn’s expertise in mining policy formulation has been sought for in projects in Cameron, Tanzania, Haiti, and the Republic of Congo. He also has banking experience, having worked with the erstwhile Ghana Cooperative Bank.
