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Ghana’s government has given the green light to its inaugural lithium mine, operated by a subsidiary of Australia-based Atlantic Lithium Limited (ASX: ALL). This development is part of Ghana’s strategy to capitalize on the growing global demand for electric vehicles (EVs) and the essential role of lithium in their batteries.
Barari DV Ghana Limited has been granted a 15-year lease for the Ewoyaa mine, situated on Ghana’s southern coastline. Atlantic Lithium began exploring lithium in this area six years ago, and the potential of this resource is highly prized by Ghana as it aims to become a significant contributor to the EV battery production chain.
As part of the agreement, Ghana has raised the royalty rate from the standard 5% to 10%, and the state’s interest in the project has increased from 10% to 13%, according to the Ministry of Lands and Natural Resources.
In addition to the government’s stake, the Minerals Income Investment Fund of Ghana will acquire an additional 6% in the mining operation and a 3.06% stake in Atlantic Lithium. The ministry also announced that the company will collaborate on establishing a lithium processing plant to optimize the economic value of the mineral. Historically, much of Ghana’s lithium was exported to China for processing.
Atlantic Lithium declined to comment on this development, which marks a significant step in Ghana’s ambition to participate in the global shift towards electric mobility and renewable energy.
REUTERS
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