Atlantic Lithium Advances Ewoyaa Lithium Project with Strategic Government Partnership

Australia’s Atlantic Lithium is progressing its Ewoyaa lithium project, poised to become one of the world’s largest lithium mines, with significant backing from Ghana's government. The company, which secured a 15-year mining license for the Ewoyaa project in October 2023, recently announced approval to list its ordinary shares on the Ghana Stock Exchange's main market. This development underscores the project’s growing momentum, particularly after the Ghanaian Minerals Income Investment Fund (MIIF), a sovereign wealth fund, became a strategic shareholder with a USD 5 million investment.

This initial investment is part of a broader USD 32.9 million financing, which Atlantic Lithium indicated reflects considerable government support. The additional USD 27.9 million will be disbursed following a final agreement, granting MIIF a 6% contributing interest in the project.

While awaiting parliamentary approval for the mining lease, Atlantic Lithium is moving forward with necessary permitting processes. Groundbreaking at Ewoyaa is scheduled for the second half of 2024, with operational capacity expected by 2026. Once completed, the mine is projected to annually produce 365,000 tonnes of spodumene concentrate.

Significantly, the Ghanaian government, through an agreement with Barari DV Ghana—a subsidiary of Atlantic Lithium—has negotiated an increase in the royalty rate from 5% to 10% and boosted its project stake from 10% to 13%. Additionally, the government plans to acquire an extra 6% in the project and 3.06% in Atlantic Lithium itself.

Moreover, as part of its community engagement, Barari DV Ghana will contribute 1% of its revenue to a community development fund and is committed to establishing a chemical plant to process lithium locally, enhancing the value chain within Ghana. This strategic project, with an estimated cost of USD 185 million, is set to commence production in 2025, marking a significant milestone in Ghana's mining sector and the global lithium market.