By Emelia B. Addae
Koforidua, June 26, GNA – The Natural Resource Governance Institute (NRGI) has expressed the need for the government to scrutinize the concession request from Atlantic Lithium regarding the Ewoyaa lithium mine.
And that, the government should assess the fiscal regime in Ghana’s lithium agreement, the value addition, fiscal justice, and responsible mining development.
The NRGI raised the concerns at a two-day media engagement in Koforidua, on Ghana’s lithium fiscal regime and refinery efforts.
The Institute supports informed inclusive decision-making about natural resources and energy transition.
The discovery of commercially viable lithium deposits, particularly at the Ewoyaa project, has positioned Ghana as a potential player in the global lithium market, which is experiencing high demand due to its use in batteries for electric vehicles and renewable energy technologies.
This presents a new revenue stream for the country, with potential for both direct and indirect economic benefits.
Mr. Damilare Ogunmowo, Africa Communications Officer at the Natural Resource Governance Institute, said as Ghana navigates the global race for minerals transition, the media must continue to play an informed and active role in shaping public discourse and holding decision-makers to account.
“If the right stories are told and the public is informed in the right direction, they would be able to ask their government the right questions as to how the lithium era will benefit them,” he said.
He added: “The lithium mining will bring additional revenue to the country and the government can invest in the social
aspect that would directly impact the lives of people in the areas of jobs acquisition, social amenities among others.”
Mr. Denis Gyeyir, Ghana Country Manager of the NRGI, said that Ghana must transition in a responsible and green manner by ensuring that it integrates the entire value chain from the signing of the mining agreement to taxes that “we are expected to generate.”
He noted that any concessions that the government will grant would have to be grounded in an economic feasibility that shows that the company (Atlantic Lithium) would not be disadvantaged, and the government would also not lose unnecessarily.
He said the NRGI had therefore made a number of proposals to the government, particularly around adopting a sliding scale royalty regime because Atlantic’s key request was that prices have fallen since the signing of the agreement in 2023.
Sliding scale royalty is a royalty rate that adjusts based on a specific factor, such as production volume or price, rather than remaining fixed.
Lithium prices have fallen from over 1,000 US dollars to about 700 US dollars and so Atlantic Lithium is asking the government to revise some of their tax proposals so that they can progress with mining.
Mr. Gyeyir said: “What NRGI is suggesting is that any grant of tax concession must be based on the projections of price performance but also on costs that the company is expected to incur going into the long term.”
“And so, we’ve done a paper that analyzes some of the key terms that the government is supposed to be negotiating,” he noted.
The organisation calls for public disclosure by Atlantic of the assumptions informing their request for concessions.
NRGI also requests the government to reduce its exposure to tax avoidance risks, safeguard its interest and ensure a fair share of benefits as it engages with the company.
GNA
Edited by D.I. Laary/Benjamin Mensah