Australia-based Atlantic Lithium expects to begin production at what would be Ghana’s first lithium mine in the coming months.
It follows the official granting of a 15-year mining lease to the firm by Ghana’s Ministry of Land and Natural Resources.
Speaking at a ceremony in Accra on Thursday (19 October), Lands and Natural Resource Minister Samuel Abu Jinapor said the government will own 19% share in the company’s local operation.
“So, following a series of negotiations, we concluded an agreement with Atlantic Lithium for the exploitation of lithium in Ewoyaa.
“And today, we are granting to the company a mining lease to commence construction for the mining of lithium. For the avoidance of doubt, this is the first lease granted for the mining of lithium in the country,” he said.
“And the Lease we are signing today differs from our standard Mining Lease, in that, it incorporates the agreed terms we have concluded with the company, based on the policy approved by cabinet,” Jinapor said.
Listen to Samuel Abu Jinapor in the attached audio clip below:
Ewoyaa Lithium Project
The Company’s flagship project, the Ewoyaa Lithium Project, set to be Ghana’s first lithium-producing mine, is being advanced to production under an agreement with Piedmont Lithium.
The project is well located to excellent infrastructure and is proven to produce a spodumene concentrate product suitable for conversion to be used in EV batteries.
In June 2023, the Company announced its Definitive Feasibility Study (“DFS”) for the Ewoyaa Project, confirming the Project’s economic viability and profitability potential.
The Study indicates a 3.6Mt spodumene concentrate production over a 12-year Life of Mine (“LOM”), generating exceptional economics:
Post-tax NPV₈ of US$1.5bn
Free cash flow of US$2.4bn from LOM revenues of US$6.6bn
Average LOM EBITDA of US$316m per annum
IRR of 105%
Short payback of 19 months
The DFS incorporates the Project’s 35.3Mt @ 1.25 Li₂O Mineral Resource Estimate and Ore Reserves of 25.6Mt @ 1.22% Li₂O and considers conservative LOM concentrate pricing of US$1,587/t, FOB Ghana Port.
Reporting by Nana Oye Ankrah in Accra
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