Did the Ghanaian Government Conceal Findings on Local Lithium Refining? Bright Simons Weighs In

Introduction

The debate surrounding the extraction and processing of Ghana’s mineral wealth has taken a dramatic turn with serious allegations leveled against the government by Bright Simons, the Vice President of the influential policy think tank IMANI Africa. In a series of posts on the social media platform X (formerly Twitter), Simons alleged that government officials may have misled the Ghanaian public regarding the feasibility of refining lithium locally. The core of his argument is that the primary mining entity involved, Atlantic Lithium, has already conducted a scoping study that effectively rules out the viability of local refining, a fact he claims the government has concealed. This revelation strikes at the heart of Ghana’s “value-addition” policy, raising critical questions about transparency, economic strategy, and the future of the country’s burgeoning green minerals sector.

Key Points

Background

To fully understand the gravity of these allegations, it is necessary to look at the broader context of Ghana’s mining policy and the specific project involved.

Ghana’s Strategic Shift to Green Minerals

Ghana, historically known for its gold and cocoa exports, is positioning itself as a key player in the global green energy transition due to significant discoveries of lithium and other “green minerals.” Lithium is a critical component in the manufacturing of batteries for electric vehicles (EVs) and energy storage systems. Recognizing the volatility of raw commodity markets, the Ghanaian government has articulated a strategic policy to ensure “value addition.” This means moving away from merely exporting raw ore and instead processing minerals locally to capture more economic benefits, create jobs, and develop technical expertise.

The Ewoyaa Lithium Project

The Ewoyaa Lithium Project, located in the Central Region of Ghana, is the country’s flagship lithium asset. It is being developed by Atlantic Lithium, an Australian and London-listed firm. The project has garnered significant attention as a potential major revenue stream for the country. Under the terms of the mining lease and public statements by government officials, there has been a consistent expectation that the project would not just involve mining but also the establishment of a processing plant (refinery) in Ghana. This expectation formed a central part of the public justification for the project’s approval.

The Role of IMANI Africa

IMANI Africa is a leading pan-African think tank focused on public policy analysis and social accountability. Under the leadership of Bright Simons, the organization has frequently scrutinized government contracts and economic policies, often advocating for greater transparency and better deals for the citizenry. Their involvement in the lithium debate signals a significant escalation in civil society oversight of the sector.

Analysis

The allegations made by Bright Simons represent a critical flashpoint in the governance of Ghana’s natural resources. An analysis of the situation reveals several layers of complexity regarding technical feasibility, economic negotiation, and political communication.

Technical and Economic Viability of Refining

Lithium refining, or chemical processing, is a capital-intensive and technically complex undertaking. A “scoping study” is a preliminary assessment used to determine whether a project warrants further, more expensive engineering studies. If Atlantic Lithium indeed concluded that refining is not viable based on their resource estimates, this could be rooted in several factors:

• Scale of Resource: If the lithium deposit is smaller than anticipated, the economies of scale required to justify a multi-billion dollar refinery may not be present.
• Infrastructure Costs: Ghana lacks established infrastructure for lithium chemical processing, meaning a refinery would require massive investment in power, water, and transport logistics.
• Market Dynamics: The cost of importing necessary chemicals (reagents) and exporting the final product might erode profit margins compared to shipping raw spodumene concentrate to established hubs like China.

If the government was aware of this negative feasibility study but continued to promise a refinery to the public, it raises questions about the management of public expectations and the honesty of the negotiation process.

Transparency and Negotiating Leverage

The core of Simons’ frustration appears to be a lack of “good faith” engagement. In mineral negotiations, information asymmetry is a major disadvantage for the host country. If the government knows the company has ruled out refining, but the public believes it is still on the table, the government’s negotiating leverage is compromised. The company knows their internal feasibility data, while the public is operating on a premise that may be technically false. This creates an environment where the government might settle for a deal that favors the miner (e.g., higher tax concessions) in exchange for a “promise” of a refinery that the miner knows is not viable.

The “Shakara” Accusation

Simons used the term “shakara,” a local pidgin term implying deception or playing games. This suggests he believes the government’s insistence on a refinery study is performative—designed to placate the public while the actual deal structure prioritizes rapid export of raw materials. If true, this contradicts the government’s stated “value addition” policy and could lead to significant political fallout.

Practical Advice

For stakeholders, investors, and citizens following this developing story, here are practical steps and considerations regarding the lithium sector in Ghana:

For Policymakers

• Prioritize Data Transparency: To restore trust, the Ministry of Lands and Natural Resources should release the technical reports and scoping studies (subject to commercial confidentiality) that underpin the Ewoyaa project decisions.
• Re-evaluate Refining Mandates: If on-site refining is genuinely not viable due to resource size, policymakers should pivot to alternative value-addition strategies, such as establishing downstream battery component manufacturing or creating a sovereign wealth fund.

For Investors

• Monitor Regulatory Risk: The controversy indicates a high risk of regulatory changes or contract renegotiations. Investors in Atlantic Lithium should track the government’s response to these allegations closely.
• Assess Community Sentiment: Social license to operate is fragile. Transparency issues can inflame local communities who are demanding their share of the mineral wealth.

For Civil Society and the Public

• Request Official Audits: Civil society organizations should petition for independent audits of the mineral resource estimates and the economic modeling used by the government.
• Focus on Fiscal Terms: Even if refining isn’t immediate, the focus must shift to ensuring the royalty rates and tax regimes compensate Ghana adequately for the export of raw materials.

FAQ

Conclusion

The allegations brought forward by Bright Simons regarding the concealment of a feasibility study on lithium refining in Ghana are serious and demand a transparent response from the government. At the heart of this issue is the tension between the economic realities of mining projects—often dictated by geology and global market forces—and the political necessity of promising development and industrialization to the electorate. Whether the Ewoyaa project proceeds with or without a local refinery, the integrity of the negotiation process is paramount. Moving forward, the Ministry of Lands and Natural Resources must prioritize open communication and data transparency to ensure that Ghana’s green mineral resources truly serve the best interests of its people.

Sources

• Life Pulse Daily. (2025, December 20). Gov’t concealed study appearing lithium refining can’t be performed in Ghana- Bright Simons.
• Bright Simons (@BBSimons). (2025, December 20). [Thread on X regarding Atlantic Lithium and Ghana Government].
• IMANI Africa. (n.d.). About Us and Our Mission.
• Atlantic Lithium. (n.d.). Ewoyaa Lithium Project Update.