In Ghana, approval of the mining permit for the Ewoyaa lithium project is facing another delay. On December 11, Atlantic Lithium announced that Parliament suspended examination of the file to allow additional consultations. The goal is to reassess the project’s fiscal terms, as the company seeks certain concessions to reflect current volatility in the lithium market.

According to the company, “the Parliament of Ghana has temporarily suspended review of the mining lease to allow further consultations regarding the existing mining code and the application of royalties. […] The Company remains committed to securing terms for the mining lease that create value for shareholders and local communities […].”

The mining lease signed in 2023 with Atlantic Lithium grants Ghana a 13% stake and sets a fixed royalty rate of 10%. However, lithium prices, which fell by 80% between March 2023 and 2024, remain on a downward trend, according to Fastmarkets. These conditions have led Atlantic Lithium to request a reassessment of the lease’s initial fiscal terms, including a reduction of the royalty rate to 5%.

While the company had recently issued statements expressing confidence in imminent ratification, the latest development revives uncertainty. The duration of the suspension has not been specified, nor the scope of the consultations to be conducted. Atlantic Lithium, however, says it remains confident in the process and intends to continue discussions with the government to determine the “best path forward.”

Ratification of the mining permit will be decisive for advancing the project, as it would open the way to a final investment decision for construction. According to the 2023 feasibility study, Ewoyaa, set to become Ghana’s first lithium mine, could produce 3.6 million tons of spodumene concentrate over 12 years, with an initial cost of $185 million.

Aurel Sèdjro Houenou