Ghana is racing against time to capitalize on its lithium discovery amid plummeting prices and the threat of synthetic alternatives.
In October 2023, government signed the first lease agreement for lithium mining with Atlantic Lithium Company at Ewoyaa in the Mfantsiman municipality of the Central Region. The agreement, which has received public backlash, has successfully been laid in Parliament after several failed attempts.
Nine months into the agreement, developments are ongoing at Ewoyaa and other catchment areas, including Krampah krom and Krofu.
Stakeholder engagements have been held including a recent public hearing in June where EPA outdoored its impact assessment statement, but the youth are still not in support.
“The EPA was here in June and presented their impact assessment statement, but till today, we don’t even know what is in the statement. And this is not helping the situation. A bigger challenge at hand is that, we the youth are the ones going to suffer at the end if the best is not derived from this deal. We have seen what has happened at Obuasi and we don’t want same here,” Kwame Essel, a youth at Krofu lamented.
Another youth, Samuel Bruce, who is also the secretary to the assemblyman is concerned about the aftermath of the mining. For him, the future is what is more paramount and the benefits to be derived that will largely develop Ewoyaa and all other areas endowed with the rich mineral.
“We want the project to come and stay, but we don’t want to be miserable after 15 years when the lease expires. This is not our motive or vision. We want a bright future,” he stressed.
A committee has also been set to look into issues of resettlement. Affected household are going to be resettled to a location yet to be identified. Most buildings which will be affected have been numbered with red markings.
Until the death of one of the workers at the project site on July 9, exploration activities were ongoing which has now been suspended to allow for investigation.
The fatality has raised safety concerns at what is set to be west Africa’s first lithium mine which the company has committed to incorporating any lessons learned from the investigation into its health and safety protocols.
Ama Foriwaa and Esi Kwakyewaa are farmers at Ewoyaa and they will be losing 4 acres of land to the mining.
“I cultivate maize, cocoyam, cassava, potato, and this is what I use to feed my family among others. If you are taking me away from what feeds me, then I equally need to know the compensation package. A sack of cassava can get me between GHC500 and GHC700 and so what will be given should also make us enjoy life with our family,” Ama Foriwaa complained.
For Esi Kwakyewaa, employment must extend to indigenes. She explained that it may be menial like security personnel but overall, most workers should come from the catchment areas and that will bring relief to indigenes.
The concerns may be endless. Nonetheless, several justifications have been made which will inure to Ghana’s economic prosperity.
Ghana may not have derived enough from its gold mining which has been a defence by some to halt the agreement but President and founder of Africa institute for extractive industries, Dr. Toni Aubynn, finds it different.
“Sometimes we even exaggerate how much we haven’t gotten from mining. Even Obuasi which we overly criticize, I think yes we could have gotten more from Obuasi, but who built the whole township of Obuasi? How did it come about? It wasn’t there before the mine went there, it was the mine which went there before the town grew. It’s difficult to say this, but it must be said sometimes,” he emphasized.
Whilst government is seeking to ratify the agreement to give green light to Australian listed company, Atlantic Lithium to mine what is now described as white gold, prices of lithium are falling globally and the introduction of artificial materials like N2116 is also threatening the replacement of the rich mineral for the usage of batteries in electric vehicles.
The former Chief Executive Officer of the Minerals Commission fears Ghana will miss the golden opportunity if there is a further delay.
“We must grab the value as we can until it becomes valueless. Let’s see how it goes, but the earlier the better. It is said that, the early bird catches the worm. So let us do it, but you can’t do it by trampling on other people’s toes. You have to engage them, you have to bring them on board and make them understand that the project is for them and that they will benefit enormously,” he added.
Royalties for gold is 3 percent, but 10 percent is what has been agreed for Lithium, making it the best agreement in the history of Ghana’s mining according to government.
Civil Society Organizations have also weighed in on the matter, concluding that while the Ghana Lithium Agreement is superior to prior mineral agreements, it necessitates a review of the Minerals and Mining Act, 2006 (Act 703) to reflect the current lease.
They argue that the negotiated fiscal terms in the agreement differ from those outlined in Ghana’s existing laws.
To ensure consistency and avoid potential litigation, the CSOs recommend amending the law to align with the newly negotiated terms.
As the conversation surrounding the agreement intensifies, it is clear that the fairness and transparency of such deals are crucial for the country’s sustainable development.
The government’s defense of the agreement continues to be met with skepticism, prompting calls for a thorough review and a more inclusive approach to resource negotiations.
onuaonline.com
