The government of Ghana has disclosed plans to revisit the terms of the Ewoyaa Lithium Agreement following a dramatic fall in global lithium prices, which has cast doubt on the financial viability of the project.
Speaking at a parliamentary session in Accra yesterday, Ghana’s Minister for Lands and Natural Resources, Emmanuel Amarh Kofi Buah, revealed that the sharp decline in lithium prices, once around $3,000 per tonne, has significantly impacted the project’s prospects.
Currently, market prices have fallen below $675 per tonne, which is the estimated production cost for the lithium concentrate according to the company’s feasibility report.
Minister Buah explained that the global price collapse has caused major lithium producers worldwide to cut production, lay off workers, and postpone new projects, including Ghana’s own Ewoyaa Lithium operation.
In response, Barari DV Ghana Limited, a subsidiary of Atlantic Lithium, the mining company granted a 15-year lease in October 2023 covering 42.63 square kilometers at Mankessim in the Central Region, has requested a revision of lease terms to prevent the project’s collapse.
The lease was submitted to Parliament in 2024 and considered by the Select Committee on Lands and Natural Resources. However, parliamentary ratification was delayed due to the adjournment for the 2024 general elections.
No, faced with the challenging market conditions, the government has been apprised of the company’s request and is preparing to present a revised proposal to the Cabinet.
Commenting on the development, Atlantic Lithium’s Chief Executive Officer, Keith Muller said:
“We remain actively engaged in discussions with relevant stakeholders in Ghana to consider a revision of the fiscal terms of the Ewoyaa Mining Lease that were initially agreed in October 2023 and welcome the recent comments made by the Minister of Lands and Natural Resources regarding the Project’s latest progress.
“Having seen a significant shift in the lithium price environment since the Mining Lease was granted, we are seeking terms that reflect prevailing market conditions and that ensure the Project can deliver value for shareholders and the generational benefits that Ewoyaa promises for Ghana and Ghanaians, including significant job creation and socio-economic development of the Project’s catchment area in the Central Region.”
Minister Buah emphasised that the Ministry has already notified Cabinet and will soon submit a new memo outlining the proposed adjustments.
The goal is to find a sustainable pathway forward that safeguards the project and Ghana’s stake in the rapidly evolving battery metals industry.
The Ewoyaa Lithium project is set to be Ghana’s first lithium mine.
Ghana’s mining sector has generated significant revenue for the country, the latest being $174 million in capital gains tax from Newmont Corporation, following the company’s sale of its Akyem gold mine in Ghana’s Eastern Region.
