Accra, Dec. 10, – The Institute of Economic Affairs (IEA) has urged the Government to take full ownership of Ghana’s lithium resources, engage the private sector as contractors rather than owners, and develop the entire lithium value chain to maximise national benefits.
The Institute proposed the establishment of a state-owned Ghana Lithium Company (GLC) to lead the exploitation and management of the mineral.
According to the IEA, the Government has already invested US$32 million in the Ewoyaa Lithium Project, a contribution it described as substantial compared to that of Barari DV, the private firm seeking ownership of the mine, and said the state could do more to assume control of the resource.
“The Ghana Lithium Company should be mandated to develop the entire lithium value chain, from raw lithium to battery production in Ghana,” the Institute said.
Addressing the media at a press conference in Accra on Tuesday, Dr. Charles Mensah, Chairman of the IEA, said Ghana stood to earn about US$172 billion from processing the estimated 3.6 million tonnes of spodumene concentrate at the Ewoyaa Mine, based on a current market price of US$9,000 per tonne of lithium carbonate.
He argued that lithium should be designated a strategic mineral, citing its importance to national security, energy transition, and Ghana’s broader economic transformation.
“As a strategic mineral, lithium is critical for Ghana’s transition into the modern economy,” Dr. Mensah said.
He cautioned the Government to proceed carefully in decisions regarding lithium exploitation and dismissed arguments based on short-term declines in global prices.
“I tell those who make such arguments that what they are proposing is ‘voodoo economics’,” he added.
Professor Aaron Mike Oquaye, an IEA Fellow and former Speaker of Parliament, called on Parliament to halt the ratification of the revised lithium agreement, warning that Ghana risked being short-changed, as had occurred with previous natural resource deals.
He said existing mining laws and agreements had constrained national development and required urgent reform.
“We admire what Dubai has achieved with its natural resources,” Prof. Oquaye said. “The models are available, and knowledge is abundant. If Dubai had relied solely on royalties, would it have achieved what it has today? So why should Ghana do otherwise?”
Prof. Oquaye also cautioned mining communities against rushing into lithium exploitation, warning that hasty extraction could leave communities worse off, as seen in several mining areas across the country.
Mr. Inusah Fuseini, former Minister of Lands and Natural Resources, described lithium as a critical mineral that presented Ghana with a “golden opportunity” to transform its economy.
He said concerns raised in Parliament that the proposed 10 per cent royalty rate in the lithium agreement conflicted with existing law, which stipulates a five per cent royalty, provided sufficient grounds to reject and renegotiate the agreement.
“The basis for the 10 per cent royalty does not exist in law, and that is what parliamentarians are pointing out,” Mr. Fuseini said.
“So, if the agreement is tainted by illegality, why should it be ratified? It offers a strong opportunity for renegotiation,” he added.
Sheikh Aremeyaw Shaibu, spokesperson for the National Chief Imam, called for deeper engagement with local mining communities, stressing the need for them to understand the processes involved and actively participate in efforts to maximise national gains from lithium resources.
GHBUSS
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