The opposition National Democratic Congress (NDC) has criticized the government’s claim of securing a 10% Royalty under Ghana’s Lithium agreement with Babari DV, calling it a celebration of mediocrity. The NDC highlights that the prevailing royalty rate of 5% was set by the Minerals and Mining Act, 2007 (ACT 703), which allows for a royalty rate between 3% and 6%. The NDC points out that this law was amended in 2015 by ACT 900, making the royalty rate subject to negotiations. In the case of the Barari-Lithium agreement, which marks Ghana’s first deal for the exploitation of a Green Mineral like lithium, the NDC argues that comparing the prevailing royalty rate of 5% to a 10% royalty rate is an exercise in mediocrity. The NDC suggests that the government should have opted for a flexible range of royalty rates, similar to Chile’s approach, which currently has a range of 8% to 21% depending on variables. However, the NDC believes that the 10% rate secured by the government could have been the baseline rate, subject to adjustment in cases of windfall revenue or profit for the company if the government had negotiated effectively. Below are details of the statement: PRESS STATEMENT For Immediate Release 13th December, 2023 NDC’S POSITION ON THE GHANA-BARARI DV LITHIUM DEAL The National Democratic Congress (NDC) has keenly followed public discussions on the controversial Mining Lease Agreement executed between the Government of Ghana and Barari  DV Ghana Limited, for the exploitation of Lithium and other associated minerals in the Ewoyaa community of the Mfantseman Municipality of Ghana. After a meticulous scrutiny of the terms of the Mining Lease Agreement, the NDC has come to the conclusion that the Ghana-Barari Lithium agreement is not in the best interest of Ghana. 1. It is an indisputable fact, that mining hasn’t benefited us as a nation over the years. Hence, there is the need for an urgent review of the country’s existing mining laws and policies, particularly in relation to green minerals. 2. This is why the flag-bearer of the NDC, H.E John Dramani Mahama has promised to review the laws that govern the extractive industry, in order for the country to maximize her share and local participation in the exploitation of our natural resources. 3. The NDC holds the view, that the green minerals of the country, should not be exploited based on the existing mining laws and policies, which are predominantly tailored for gold mining and have not benefited the nation over the years. 4. We are of the firm opinion, that it is about time the existing colonial model of mining lease concession agreements, was reviewed. New models for the exploitation of our mineral resources such as Joint Ventures and Service Agreements, that provide for equitable benefit sharing, enhanced local participation and value addition, should be considered as part of the review of the laws and policies governing our extractive sector. 5. Our beloved country urgently needs a reviewed mining regime, that provides for the sustainable funding and strengthening of the Ghana Geological Survey Authority, to engage in reconnaissance and prospecting, particularly in relation to green minerals. We believe that this, if supported by the Minerals Income and Investment Fund (MIIF) under the right policy framework, will enhance the bargaining power of the state in the exploitation of our mineral resources. 6. It is for these reasons, that the Akufo-Addo/Bawumia/NPP government should have extensively engaged all affected local communities, as well as key stakeholders including CSOs in the extractive sector, before executing the Barari-Lithium agreement. Sadly, there has been very little engagement by government with the affected local communities and key stakeholders in the processes leading to the execution of the controversial lithium deal. The NDC believes that, all stakeholders in the extractive sector must have a say in the kind of law and model, under which our lithium and other green minerals should be exploited for the maximum benefit of the State. 7. Aside the fundamental issues enumerated above, there are certain germane issues about the terms of the Ghana-Barari DV lease agreement that are worth highlighting: I) First and foremost, the requirement in the mining lease agreement for the establishment of a chemical plant to process our lithium locally, is very weak to say the least. * We note with concern, that under Schedule Two (2) of the lease agreement, the establishment of a local chemical plant by the company is not mandatory, but contingent on the conduct of a scoping study to determine the economic viability of the processing of lithium in Ghana. * Even more worrying, is the fact that, paragraphs 1(b)(c) and (d) of schedule two (2) of the lease agreement, envisages the inability of the company (Barari DV) to meet this requirement. This makes nonsense of the claim by government that no raw lithium will be exported from Ghana under the agreement. II) Secondly, there are no specific provisions in the mining lease that emphasize Ghana’s control over the lithium mining value chain and the benefits thereof. * In the extractive sector, the ability of a country to optimize gains from the value chain is the surest way of domesticating benefits. * The NDC wants a deal that provides a clear and unambiguous strategy for maximizing the benefits of lithium mining through value chain participation. There is therefore the need for mandatory requirements for the local processing of raw lithium before it is exported out of the country and a 100% off-taker for the by-products thereof (i.e Feldspar, Silica, Kaolin etc.) for local industries and manufacturing companies. III) On the claim by government, that Barari DV will be paying corporate tax of 35% under the deal, it is important for government to clarify the status of the company and provide the full facts relative to concessions that have been granted the company. *What the Mining Lease expressly provides is that, Barari DV shall pay taxes in accordance with the mining laws of Ghana, without more. * We are however told