Wedoany.com Report-May 3, Atlantic Lithium, an Australian mining company, is engaging with the Ghanaian Government to revise the fiscal terms for its Ewoyaa lithium project in Ghana. The discussions focus on adjusting the existing mining revenue framework, which includes a 10% state free carried interest and a 13% special royalty on lithium production revenue.

The Ewoyaa Project is projected to produce 3.6mt of spodumene concentrate over a 12-year mine life.

The need for these adjustments stems from a significant decline in lithium prices, which have dropped by over 80% since their 2022 peak, impacting the economic viability of new lithium mining initiatives worldwide. Atlantic Lithium’s general manager, Ahmed-Salim Adam, emphasized to Reuters the importance of updating these terms to ensure the project’s sustainability.

Despite market challenges, Atlantic Lithium remains committed to advancing the Ewoyaa project in collaboration with the Ghanaian Government and local communities. Executive chairman Neil Herbert stated: “We are dedicated to working in a spirit of partnership with the Government of Ghana and our host communities to ensure Ewoyaa becomes a flagship project for the country and the region. While current lithium prices present headwinds, we believe that through collaboration and prudent fiscal measures, we can advance Ewoyaa to production and deliver lasting value for all stakeholders.”

Located in an area with strong infrastructure, the Ewoyaa project is well-positioned to produce spodumene concentrate for electric vehicle batteries. In June 2023, Atlantic Lithium published its definitive feasibility study (DFS), confirming the project’s economic potential. The study projects a production of 3.6 million tonnes of spodumene concentrate over a 12-year mine life, supported by updated mineral reserves of 25.6 million tonnes at 1.22% lithium oxide.

In October 2023, Atlantic Lithium obtained a mine operating permit, marking the final regulatory milestone before construction can begin. The company continues to work closely with stakeholders to navigate market challenges and ensure the project’s success, aiming to deliver sustainable economic benefits to Ghana and the surrounding region.