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Renegotiating lithium deal could hurt investor confidence

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A natural resource governance expert has cautioned that any attempt to renegotiate Ghana’s lithium agreement or replace Barari DV Ghana Limited, a subsidiary of Atlantic Lithium, could undermine investor confidence and deter future investments.

Lithium-Deal

More than two years after the country signed its first lithium deal with Barari DV Ghana Limited, the agreement remains unratified by Parliament. But with a new government in place, concerns have emerged over whether there will be a revision or a shift to a new investor, a move that Africa Senior Programme Officer of the Natural Resource Governance Institute, Denis Gyeyir, believes could create uncertainty in the country’s investment climate.

 

Mr. Gyeyir outlined three possible options available to the new Minister of Lands and Natural Resources: presenting the agreement to Parliament as it stands, renegotiating with the company to align the terms with the government’s policies, or seeking an entirely new investor.

 

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