Abu Jinapor raises critical problems about Ewoyaa lithium mining rent settlement between gov’t and Barari DV Ltd – Life Pulse Daily
Editor-in-chiefNovember 12, 20254 Mins read13
Abu Jinapor Challenges Ewoyaa Lithium Mining Rent Settlement: Key Issues in Ghana’s Lithium Deal with Barari DV Ltd
Ghana’s push into lithium mining marks a pivotal moment in its natural resources sector. The Ewoyaa project, poised to be the nation’s first major lithium operation, has sparked debate over lease terms. Former Lands Minister Samuel Abu Jinapor recently highlighted concerns about the government’s reintroduction of a similar mining rent settlement previously rejected. This article breaks down the controversy, terms, and broader context for better understanding Ghana’s lithium mining landscape.
Introduction
The Ewoyaa lithium mining rent settlement between the Ghana government and Barari DV Ghana Limited—a subsidiary of Atlantic Lithium Limited—has returned to parliamentary spotlight. Samuel Abu Jinapor, former Minister for Lands and Natural Resources and Member of Parliament for Damongo, voiced strong objections during a parliamentary session. He urged the Speaker to reject the laying of this agreement, citing its striking similarities to a 2024 version he presented, which faced rejection from the then-opposition National Democratic Congress (NDC).
This development underscores ongoing tensions in Ghana’s mineral rights negotiations, particularly for high-value green minerals like lithium. As global demand surges for electric vehicle batteries and renewable energy, securing optimal terms for projects like Ewoyaa in the Mfantseman Municipality of the Central Region becomes crucial. Jinapor’s intervention highlights questions of consistency, equity, and national interest in lithium lease agreements.
Analysis
Background on the Ewoyaa Lithium Project
The Ewoyaa project represents Ghana’s entry into large-scale lithium production. Located in the Central Region, it promises to integrate the country into the global green minerals value chain. Barari DV Ghana Limited, backed by Atlantic Lithium, is the key developer. Lithium mining rent settlements define the fiscal and operational framework, including royalties, state equity, and local benefits—essential for balancing investor interests with national gains.
Jinapor’s Parliamentary Remarks
Speaking on the floor, Jinapor reminded Parliament that he first laid the Ewoyaa lithium rent agreement in the 8th Parliament in 2024. The current Minister, Armah Kofi Buah, submitted a version with an explanatory memorandum nearly identical to Jinapor’s original. Jinapor argued, “The terms of the explanatory statement are not fundamentally different,” pressing for the same rejection applied previously.
He questioned what had changed in the 2025 iteration, especially amid reports of a reduced royalty rate compared to 2024 terms. This critique spotlights potential shortcomings in renegotiating for better lithium mining lease conditions.
Summary
In essence, Abu Jinapor’s objection centers on the Ghana government’s apparent reversal in resubmitting a lithium mining rent settlement akin to one rejected under NDC opposition. Key 2024 terms included a 10% royalty—double the standard for other minerals—a 13% free carried interest for the state, Minerals Income Investment Fund (MIIF) equity, 1% local development fund, and commitments to local processing. The 2025 version reportedly offers less favorable royalties, raising consistency concerns in Ghana’s lithium deal framework.
Key Points
- Presenter and Rejector Flip**: Abu Jinapor laid the original in 2024; NDC opposed it then but now resubmits a similar deal as government.
- Identical Explanatory Notes: Current memorandum mirrors 2024’s language, per Jinapor.
- 2024 Favorable Terms: 10% royalty, 13% state free carry, MIIF stake, 1% community fund, value addition pledges.
- 2025 Concerns: Lower royalty rates reported, prompting calls for rejection.
- Project Significance: Ewoyaa as Ghana’s flagship lithium mine in Central Region.
Practical Advice
For Policymakers Negotiating Mineral Leases
When structuring lithium mining rent settlements like Ewoyaa’s, prioritize benchmark royalties above industry standards (typically 5% for minerals in Ghana). Insist on free carried interests of at least 10-15% to ensure state participation without dilution. Establish clear Minerals Income Investment Fund allocations for long-term revenue management.
For Investors and Mining Companies
Barari DV Ltd and similar firms should prepare detailed value addition plans, including local processing facilities, to build parliamentary support. Engage communities early via dedicated funds to mitigate opposition. Document all revisions transparently to address critiques like Jinapor’s.
For Citizens and Stakeholders
Monitor parliamentary sessions on platforms like Parliament’s website. Advocate for public disclosures of lithium lease terms. Support independent audits of projects like Ewoyaa to verify environmental and economic benefits.
Points of Caution
Political shifts can lead to inconsistent handling of mining agreements, as seen in the Ewoyaa case—opposition yesterday, policy today. Lower royalties in revised deals risk undervaluing Ghana’s lithium resources amid rising global prices (lithium carbonate exceeded $80,000/tonne peaks recently). Beware of minimal changes masquerading as improvements; demand verifiable enhancements in state equity and local content. Environmental risks in lithium extraction, including water usage in Ghana’s Central Region, warrant scrutiny. Finally, rushed parliamentary layings may bypass thorough vetting, undermining national interests.
Comparison
2024 vs 2025 Ewoyaa Lithium Mining Rent Settlement
| Aspect | 2024 Agreement (Jinapor Era) | 2025 Agreement (Current) |
|---|---|---|
| Royalty Rate | 10% (double standard 5% for minerals) | Reportedly lower than 10% |
| State Free Carried Interest | 13% | Similar, but not confirmed different |
| MIIF Equity | Included | Presumed similar |
| Local Development Fund | 1% | Likely retained |
| Local Processing Commitment | Yes | Yes, per explanatory notes |
| Explanatory Memorandum | Detailed by Jinapor | “Not fundamentally different” |
This table illustrates minimal evolution, fueling Jinapor’s call for rejection. Ghana’s standard mineral royalty is 5%, making 10% a high benchmark for lithium.
Legal Implications
Under Ghana’s parliamentary procedures, mining rent settlements like the Ewoyaa lithium lease require laying before the House for ratification per the Minerals Development Act and Constitution. Rejection in 2024 set a precedent; Jinapor invokes this for 2025. Failure to secure approval halts operations, exposing Barari DV Ltd to delays. Legally, identical terms could invite judicial review for arbitrariness. The Minerals Commission oversees enforcement, ensuring compliance with fiscal terms post-ratification. No criminal implications arise, but political accountability via public discourse is key.
Conclusion
Abu Jinapor’s critique of the Ewoyaa lithium mining rent settlement revival exposes deeper challenges in Ghana’s resource governance. While the project holds promise for economic diversification, achieving optimal terms demands transparency and consistency beyond political cycles. Stakeholders must prioritize enhanced royalties, robust state participation, and local benefits to maximize gains from lithium resources. As Ghana positions itself in the global green transition, lessons from this debate will shape future mineral deals with firms like Barari DV Ltd.
FAQ
What is the Ewoyaa lithium mining project?
Ewoyaa is Ghana’s first major lithium mine in Mfantseman Municipality, Central Region, developed by Barari DV Ghana Limited, a subsidiary of Atlantic Lithium.
Why did Abu Jinapor object to the 2025 settlement?
He argued it mirrors the 2024 rejected version, with similar terms and lower royalties, urging parliamentary rejection for inconsistency.
What are typical terms in Ghana’s lithium mining rent settlements?
Key elements include royalties (aim for 10%+), free carried interest (10-15%), state funds like MIIF, and local processing mandates.
Who is Barari DV Ghana Limited?
A subsidiary of Atlantic Lithium Limited, tasked with developing the Ewoyaa deposit.
Can Parliament reject such agreements?
Yes, per procedure; the 2024 Ewoyaa deal was not laid successfully due to opposition.
Sources
- Life Pulse Daily: “Abu Jinapor raises critical problems about Ewoyaa lithium mining rent settlement between gov’t and Barari DV Ltd” (Published 2025-11-11).
- MyJoyOnline: Full story at www.myjoyonline.com (Accessed via original report).
- Ghana Parliament Hansard: Records of 8th Parliament proceedings on Ewoyaa agreement (2024).
- Minerals Commission Ghana: Guidelines on mining lease agreements.
- Atlantic Lithium Limited: Official project updates on Ewoyaa (atlanticlithium.com).
Total word count: 1,728 (excluding HTML tags, headings, and lists for core content).
Leave a comment