Australian miner Atlantic Lithium is actively engaged in negotiations with the Ghanaian government to revisit the fiscal framework governing the Ewoyaa lithium project.
The discussions focus on revising the current mining revenue terms, which include a 10 per cent state free carried interest and a 13 per cent special royalty on lithium production revenue, as the project faces economic challenges due to a steep decline in lithium prices.
Since peaking in 2022, lithium prices have plunged by over 80 per cent, significantly impacting the viability of new lithium mining ventures worldwide.
This downturn has put pressure on Atlantic Lithium to seek adjustments that would ensure the Ewoyaa project remains economically feasible.
Ahmed-Salim Adam, General Manager of Atlantic Lithium, emphasised the critical nature of these negotiations in an interview with Reuters, stating: “Such changes are critical for the project’s survival.”
Despite the adverse market conditions, Atlantic Lithium remains committed to advancing the Ewoyaa project in close cooperation with the Ghanaian government and local communities.
Neil Herbert, Executive Chairman of Atlantic Lithium, expressed optimism about the partnership and future prospects, stating: “We are dedicated to working in a spirit of partnership with the Government of Ghana and our host communities to ensure Ewoyaa becomes a flagship project for the country and the region.
“While current lithium prices present headwinds, we believe that through collaboration and prudent fiscal measures, we can advance Ewoyaa to production and deliver lasting value for all stakeholders.”
Strategically located with excellent infrastructure, the Ewoyaa project has demonstrated its ability to produce high-quality spodumene concentrate, a key raw material for electric vehicle batteries.
In June 2023, Atlantic Lithium published a definitive feasibility study (DFS) confirming the project’s economic viability.
The DFS projects production of 3.6 million tonnes of spodumene concentrate over a 12-year mine life, supported by updated mineral reserves of 25.6 million tonnes grading 1.22 per cent lithium oxide.
The project secured its mine operating permit in October 2024, marking the final regulatory milestone before construction can begin.
As Atlantic Lithium and the Ghanaian government work toward a mutually beneficial agreement, the outcome of these negotiations will be pivotal in shaping the future of lithium mining in Ghana and the broader West African region.
