Bagbin stalls multibillion dollars Bauxite, Lithium deals

A stalemate in Parliament occasioned by Speaker Alban Bagbin declaring four seats vacant has led to a delay in approving two substantial mining deals poised to inject billions of dollars into Ghana’s economy and create thousands of jobs.
Among the projects on hold is a 15-year mining lease granted to Barari DV Ltd., a subsidiary of Atlantic Lithium Ltd., for lithium mining at Ewoyaa in the Central Region.
This project, expected to yield nearly $5 billion in revenue, is anticipated to bring significant economic benefits to Ghana.
The second deal involves the Ghana Integrated Aluminium Development Corporation (GIADEC) in collaboration with Ashanti Bauxite Limited (ABL), a joint venture with Rocksure International.
This project focuses on tapping into Ghana’s vast bauxite resources, includes a $200 million mine construction cost and $1 billion refinery.

Hopes of communities dashed
As Speaker Bagbin files a lawsuit challenging the Supreme Court’s order of stay of execution, the stalemate is far from being resolve before this Parliament rises.
While indigenes of the beneficiary communities are anxious to see the start of projects to reap the expected benefits, developments in parliament have put a hold on their hopes.

Details of Bagbin’s lawsuit
Mr Bagbin, called upon the Supreme Court to cancel all legal processes and orders related to the recent ruling on his declaration of four parliamentary seats as vacant.
Through his legal team, he argued that the Court’s involvement violates parliamentary independence and procedural fairness.
Mr Bagbin asserts that the Supreme Court lacks the jurisdiction to overrule decisions made by the Speaker of Parliament.
His legal team argues that Alexander Afenyo Markin’s initial appeal to the Court was procedurally flawed and should have been dismissed outright.
Additionally, he accuses the Court of accepting incomplete or misleading information from Afenyo Markin, which he believes led to an unjust ruling.
According to Mr Bagbin, the Court disregarded essential rules and procedures in its decision-making process, violating Article 296 of the Constitution, which outlines standards for discretionary powers.
He contends that by failing to follow these guidelines, the Court compromised the principles of natural justice. He believes these procedural lapses indicate an improper exercise of discretion by the judiciary.

Potential political bias
The Speaker’s lawyers raise concerns that if the Court does not reverse its orders, it could appear to be advancing a political agenda or even attempting to undermine the 1992 Constitution. They worry this situation could set a precedent where judicial intervention in parliamentary matters might erode the separation of powers.
In summary, Bagbin is requesting the Supreme Court to dismiss the October 18 orders and reaffirm its role as a neutral body.
His legal team argues that the Court’s involvement, if not set aside, risks positioning the judiciary as politically influenced, thereby potentially undermining Ghana’s constitutional foundation.

Benefits of Lithium Mining Lease
The proposed lithium mining lease differs from previous arrangements due to enhanced terms, including a 10% royalty, 19% state participation, and a mandatory listing on the Ghana Stock Exchange (GSE) to increase it to 30% to encourage local ownership and a 1% revenue allocation for community development.
Additionally, Atlantic Lithium’s Ewoyaa mine is expected to become Africa’s third-largest hard-rock lithium project, targeting an annual production of 365,000 tonnes of spodumene concentrate.
In October 2023, the Ewoyaa project was awarded a mining lease, and the Minerals Income Investment Fund (MIIF) has invested $5 million, signaling significant local backing.
Atlantic Lithium has secured a GSE listing with shares valued at GH₵649.6 million.
This move enhances Ghana’s position in the global lithium market, in line with the government’s strategy to leverage mineral resources for national development.
MIIF also plans an additional $27.9 million investment to further increase its stake in Atlantic Lithium’s Ghanaian assets.
This agreement also supports Piedmont Lithium Ltd.’s planned refinery in Tennessee, which supplies Tesla Inc. and LG Chem Ltd.