Atlantic Lithium seeks terms revision for Ewoyaa lithium project

Atlantic Lithium is seeking the government of Ghana to revise terms and to reconsider the financial structure of the Ewoyaa lithium project.

The company is seeking adjustments to the country’s mining revenue policies, which currently include a 10% free carried interest for the state and a 13% special royalty on lithium production. These terms have become a point of concern due to the significant decline in global lithium prices, which have fallen by over 80% since their 2022 peak.

The drop in lithium prices has put financial pressure on new mining developments worldwide, including the Ewoyaa project. Atlantic Lithium’s general manager, Ahmed-Salim Adam, emphasized the importance of updating the fiscal terms, and said such revisions are essential for the project’s economic survival. The company maintains that more balanced financial terms are necessary to make the project viable in the current market.

Despite these market challenges, Atlantic Lithium remains committed to advancing the Ewoyaa project in collaboration with the Ghanaian Government and local stakeholders. Executive chairman Neil Herbert reiterated the company’s dedication to working in partnership with Ghana to ensure the success of the project. He noted that, through cooperation and reasonable financial measures, the Ewoyaa mine could still move forward and create long-term benefits for all parties involved.

Ewoyaa project

The Ewoyaa project holds strategic importance due to its location and established infrastructure, as well as its potential to produce high-quality spodumene concentrate suitable for electric vehicle batteries. In June 2023, the company released its definitive feasibility study (DFS), which confirmed the project’s economic potential. The DFS projected a total production of 3.6 million tonnes of spodumene concentrate over a 12-year mine life, based on updated reserves of 25.6 million tonnes at a grade of 1.22% lithium oxide.

In October 2024, Atlantic Lithium secured the final regulatory approval needed to begin construction, receiving the mine operating permit. This milestone positions the Ewoyaa project to become a leading lithium asset in West Africa, provided the fiscal environment can be adapted to reflect current market realities.