Atlantic Lithium is defending its request to renegotiate the lease agreement for its flagship Ewoyaa Lithium Project, citing a severe downturn in global commodity prices.
The company’s General Manager, Ahmed Salim Adam, insists the review is an economic necessity, not an attempt to shortchange the Ghanaian state.
Speaking on the sidelines of the Africa Extractives Media Fellowship, Adam explained the project’s financial foundations have been undermined.
He noted that while the feasibility study used a conservative price of $1,500 per tonne of spodumene concentrate, current prices have plummeted to between $850 and $900. This represents a drop of more than 70 percent from the 2023 peak of $3,200 per tonne.
“The reality is that the market has collapsed,” Adam stated. “It is a no brainer to know that you have to take a second look at the financials.”
He emphasized that the government, as a significant stakeholder, would also benefit from ensuring the project remains commercially viable. The company confirms it is not walking away from the deal but seeks a fair recalibration reflecting market conditions.
The request mirrors growing concerns among mining investors globally as lithium prices tumble due to oversupply and slower than expected electric vehicle adoption. However, some civil society organizations in Ghana remain skeptical.
They argue the original feasibility study already accounted for price volatility and warn that the national interest must not be compromised under the guise of market corrections.
