Parliament divided over lithium and bauxite mining leases amid allegations of resource control

The Chairman of the Lands and Natural Resources Committee, Francis Adabor, has accused the minority in Parliament of boycotting a key stakeholder engagement on lithium and bauxite mining leases due to influence from a powerful entity seeking exclusive control over the Nyinahin concession.

“We have noticed a hidden hand guiding their actions. They seem intent on ensuring that the Nyinahin bauxite is awarded to a single entity. However, we believe Ghana belongs to all of us, and it’s only fair that everyone has a stake in these resources. The majority will do everything within our power to bring this report to the plenary for discussion,” Adabor stated at a stakeholder engagement on Tuesday at Parliament House.

Despite the boycott, the majority intends to push forward with the approval process, arguing that it is in the nation’s best interest to ensure broad participation in the benefits from these resources.

The minority in Parliament refused to participate in a stakeholders’ meeting concerning the Lithium Mining Agreement, citing an emergency parliamentary session at the conference center as their reason. Ranking Member of the Committee, Alhassan Suhuyini, expressed their refusal to recognize the outcomes of the meeting, which was intended to review memos from stakeholders about Parliament’s approval of two mining leases.

The agreements in question involve the government and Ashanti Bauxite Ltd for bauxite extraction in the Nyinahini Block 2 Area of the Ashanti Region, and Barari DV Ghana Limited for lithium mining at Ewoyaa in the Central Region. These agreements were laid before Parliament by Minister of Parliamentary Affairs, Osei Kyei-Mensah-Bonsu, on behalf of the Minister for Lands and Natural Resources. The Speaker of Parliament, Alban Sumana Bagbin, has since referred the agreements to the Lands and Natural Resources Committee for further consultations.

During a stakeholder engagement with civil society organizations and traditional authorities, Osagyefo Amanfo Adu VI, Omanhen of the Mankessim Traditional Area, representing Ewoyaa, urged Parliament to ensure that until the agreement is fully approved, mining companies should not declare the area an active mining zone. He argued that declaring it as such would halt all economic activities, particularly farming, which has already been severely impacted since December 2023.

Furthermore, he emphasized the importance of allowing the affected communities to continue their livelihoods until a final decision is made, warning that failure to approve the project could result in significant losses for the local population.

A chief from Nyinahin, Nana Agyei Manu Ababio, highlighted the ongoing engagement with GIADEC and Rocksure Company, acknowledging the challenges of mining but urging against politicizing the lithium agreement. He called on the government and Parliament to expedite the approval of the bauxite agreement, noting the severe economic hardship faced by the local youth due to inactivity in the region.

Dennis Asare from Imani Africa raised concerns about the lithium market’s volatility, urging the state to protect the interests of both the government and affected communities. He emphasized the need for mechanisms in the mining agreements that reflect the inherent value of lithium, particularly as it becomes increasingly crucial in the global energy transition.

Think tanks, including Imani Africa and the Institute of Economic Affairs (IEA), have also weighed in on the discussions. 

Dr. John Kwabena Kwakye of the IEA criticized the current lease agreements, arguing that they do not sufficiently benefit the country. He called for a review of the Minerals and Mining Act, proposing a shift towards a production-sharing or service contract model. Dr. Kwakye also suggested the establishment of a Ghana Lithium Company to develop the entire value chain, rather than relying on concession-based agreements.Dennis Gyeri of the Natural Resource Governance Institute (NRGI) projected a 500% growth in lithium demand and stressed the importance of maximizing government revenue without deterring investment. He advocated for flexible profit-sharing mechanisms that adjust with the profitability of mining companies, ensuring sustained government revenue while encouraging further investment in Ghana’s mineral resources.

By Eugene Davis