Australian-based lithium exploration and production company, Atlantic Lithium, has secured a 15-year exclusive mining lease from the Government of Ghana for the development of the West African country’s first-ever lithium project: the Ewoyaa project.
The project will be undertaken by Barari DV Ghana Ltd – a subsidiary of Atlantic Lithium – and will yield 2.7 million metric tons per annum (mtpa) of spodumene concentrate, with peak production anticipated to reach up to 3.6 mtpa over a 12-year mine life period.
Financed by Australian mining company Piedmont Lithium and Ghana’s sovereign wealth fund the Minerals Income Investment Fund, the mining development comprises a state-of-the-art $185 million processing plant. The payback period for the plant is set at nine and a half months and a competitive offtake partnering process is currently underway to raise capital for the remaining 50% feedstock.
Neil Herbert, Executive Chairman of Atlantic Lithium, stated that, “The mining lease is a major endorsement of the viability of the project and landmark de-risking milestone in its advancement towards production. The Government of Ghana…has remained incredibly cooperative throughout our application process.”
Under the terms of the lease, Atlantic Lithium has been granted the exclusive rights to carry out mining and production activities across the license. The company is also required to list on the Ghana Stock Exchange and conduct studies to explore further strategies for enhancing value addition across the industry.
The project falls under efforts by the Government to position the country as a leading critical minerals hub and is line with the Green Minerals Policy launched this year. Once operational, the project will represent one of the world’s top ten spodumene concentrate producing mines.
