Atlantic Lithium Ghana remains optimistic about the parliamentary ratification of its key mining agreement, anticipating that approval will be secured before the end of the year. The ratification will pave the way for construction and eventual production at Ghana’s first commercial lithium mine.
The company’s General Manager, Ahmed-Salim Adam, says the project marks a major milestone for Ghana’s mining sector, particularly in advancing local participation and community development.
Speaking in an interview with Noah Nash Hoenyefia of the EIB Network and Fellow of Africa Extractive Media Fellowship, Mr. Adam revealed that although operations are yet to begin, the company has already made significant contributions to Ghana’s economy through tax payments.
“Last year alone, we paid approximately GH¢90 million in taxes,” he said. “Once the ratification process is completed, we expect the board to re-evaluate our investment decision so we can commence construction without delay.”
According to him, the construction phase is expected to take between 18 and 24 months, after which production will begin. Dividends, he added, will only be paid once the company starts generating profit.
A key highlight of the project is the government’s 10% free-carry interest, ensuring that the state is not just a recipient of taxes but an active participant in decision-making.
“We are also hopeful that the Minerals and Energy Fund (MEF) will consider investing in the project soon,” Mr. Adam added.
He further announced the introduction of a 1% Community Development Fund, which will be based on revenue rather than profit.
“This ensures that regardless of our profit levels, 1% of our revenue will go directly to the community,” he explained. “The people themselves will decide how to use it — for schools, clinics, or infrastructure. It’s a major shift from traditional voluntary corporate social responsibility.”
Mr. Adam commended the Ministry of Lands and Natural Resources and the Minerals Commission for their collaboration, emphasizing that timely ratification is critical to kickstarting operations.
“The Minister has been very supportive and understands the transformative potential of this project. However, parliamentary approval is essential for us to move forward,” he noted.
Market Conditions and Project Outlook
He acknowledged that global market trends have affected the project’s financial outlook. When the initial agreement was signed in 2023, the price of spodumene, a key lithium mineral, stood at around US$3,200 per tonne. Prices have since dropped to about US$850–900 per tonne, prompting a review of the project’s financial model.
“It’s important that we reassess the situation carefully,” he said.
Despite scaling down its workforce from 167 to 62 employees, Atlantic Lithium remains confident in Ghana’s mining future.
“We see Ghana as a partner, not just a host country,” Mr. Adam emphasized. “Our aim is to build a sustainable industry that benefits the nation, our investors, and local communities.”
He projected that once operational, the mine will create hundreds of direct jobs and thousands of indirect jobs through local suppliers and contractors, boosting growth in transport, logistics, and services.
“With collaboration and transparency, we can make Ghana proud as Africa’s leading lithium producer,” he said.
Background
Atlantic Lithium Limited is a British-Australian mining company focused on lithium assets in West Africa, especially Ghana and Côte d’Ivoire. Formerly known as IronRidge Resources, the company rebranded to focus exclusively on lithium.
In Ghana, Atlantic Lithium is developing the Ewoyaa Lithium Project near Saltpond in the Central Region which is expected to become Ghana’s first operational lithium mine. The Minerals Income Investment Fund (MIIF), representing the government, is a key local partner and shareholder.
The government granted the company a mining lease in October 2023, which includes a 13% free-carry interest and higher royalty rates, reflecting Ghana’s push for greater local participation and benefits.
Feasibility studies indicate the mine will produce about 3.6 million tonnes of spodumene concentrate over a 12-year life span – positioning Ewoyaa among Africa’s most promising hard-rock lithium deposits.
However, the company can only proceed once Parliament formally ratifies the agreement. Atlantic Lithium remains confident that this milestone will soon be achieved.
Source: KumasiMail.Com/Noah Nash Hoenyefia
