Atlantic Lithium is in ongoing discussions with the Ghanaian government to find a compromise on the terms for its Ewoyaa lithium project, according to the company’s chief.
The miner is requesting concessions on Ghana’s new mining revenue framework, which includes a 10% state free carried interest and a 13% royalty on gross lithium revenue.
This request comes as lithium prices have plummeted over 80% since their 2022 peak, casting doubt on the economic viability of the West African nation’s first lithium mine.
Company representatives stated that the significant drop in lithium prices has reduced the project’s value, necessitating urgent revisions to the fiscal terms to ensure its progression.
Ghana had granted Atlantic Lithium a 15-year lease for the project, aiming to capitalize on the electric vehicle boom. The Ewoyaa project is projected to become a major global producer of spodumene concentrate.
However, construction has been delayed, and the price collapse further complicates its viability.
While there has been a recent price recovery, analysts remain cautious, noting that increased mine supply and tariffs are dampening prospects for new entrants like West Africa in a weak price environment.
Atlantic Lithium emphasized its commitment to working collaboratively with Ghana to make the Ewoyaa project a success.
The Ghanaian government has yet to respond to the company’s request for revised terms.