Atlantic Lithium has resubmitted a revised mining lease for its flagship Ewoyaa Lithium Project to Parliament following withdrawal of the agreement on December 11 for additional consultations on Ghana’s mining code and royalty framework.
The company confirmed December 22 that the revised lease has been referred to the Parliamentary Select Committee for ratification under a new sliding scale royalty structure. The resubmission comes after Parliament temporarily withdrew consideration to conduct broader reviews of Ghana’s regulatory framework for critical minerals.
The revised mining lease incorporates fiscal terms aligned with Ghana’s proposed Minerals and Mining Royalty Regulations 2025, which establishes sliding scale royalties for lithium projects based on spodumene prices. Under the framework, royalties start at 5.0 percent for spodumene prices up to 1,500 United States dollars per tonne, rising to 7.0 percent for prices between 1,501 and 2,500 dollars, 10.0 percent for prices between 2,501 and 3,000 dollars, and reaching 12.0 percent for prices above 3,000 dollars per tonne.
Lands and Natural Resources Minister Emmanuel Armah Kofi Buah announced the new legislative instrument introduces an automatic sliding scale royalty system ensuring certainty for both the state and investors. The minister explained that although the base royalty rate is five percent, the sliding scale ensures upward adjustments tied to global market prices of the commodity.
The new framework also incorporates a one percent Community Development Fund from gross revenues to support infrastructure projects in the Mfantseman Municipality. Minister Buah noted such infrastructure provisions were absent from earlier agreements and represent a strengthening of community benefits.
Following Parliament’s adjournment for the festive period, the Select Committee will undertake its review of the revised mining lease in the new year before providing its recommendation to Parliament for or against ratification. Atlantic Lithium remains confident that ratification will be forthcoming in accordance with due parliamentary process, though the company cautioned shareholders that there can be no certainty the proposed terms will not change or that Parliament will indeed ratify the lease.
The Ewoyaa Lithium Project was originally granted a mining lease in October 2023 but has remained unratified for over two years due to disputes over commercial terms. Former Lands and Natural Resources Minister Samuel Abu Jinapor publicly criticized the revised terms as less favorable than the agreement his administration negotiated in 2023.
Ranking Member on the Lands and Natural Resources Committee Kwaku Ampratwum Sarpong rejected the revised lithium agreement, describing it as inimical to Ghana’s national interest. According to the caucus, Barari DV Ghana Limited was prepared to proceed with a 10 percent royalty arrangement, contrary to the five percent effective benefit presented under the revised framework.
The project located approximately 100 kilometers southwest of Accra in the Central Region would become Ghana’s first lithium producing mine upon ratification. Atlantic Lithium published a Definitive Feasibility Study in July 2023 and has secured an Environmental Protection Authority Permit in September 2024 and a Mine Operating Permit in October 2024.
Paramount Chief of the Nkusukum Traditional Area Okogyeman Okese Essando IX described the Ewoyaa Lithium Project as the hope of the people of Mfantseman and Nkusukum, warning that prolonged delays are worsening hardship and frustration among affected communities. Communities including Ewoyaa, Amanse, Nankesedo, Anokye, Abonko and Twafo remain concerned about land access restrictions and stalled compensation plans.
The government secured a 19 percent equity stake in the project comprising a 13 percent free carried interest and an additional six percent through the Minerals Income Investment Fund. MIIF committed approximately 51.4 million dollars to support the development of the Ewoyaa lithium project.
Atlantic Lithium has invested approximately 70 million dollars into the development since 2016. The project was expected to position Ghana among the world’s top 10 producers of spodumene concentrate. The company is listed on the Alternative Investment Market in London, the Australian Securities Exchange, and the Ghana Stock Exchange.
The revised lease aligns the project’s royalty rate and Growth and Sustainability Levy with current legislated rates following a period of consultation undertaken by the Minister of Lands and Natural Resources with relevant stakeholders in Ghana. All other fiscal terms outlined in the original Mining Lease granted in October 2023 remain unchanged.
The mining lease would provide Atlantic Lithium exclusive rights to conduct mining and commercial production at Ewoyaa for 15 years with renewal options under Ghanaian law. Parliamentary ratification would enable the Africa focused exploration company to transition from regulatory approval to commercial implementation phases.
