Home » Atlantic Lithium Secures Mining Lease for Ewoyaa Lithium Project in Ghana

Atlantic Lithium Secures Mining Lease for Ewoyaa Lithium Project in Ghana

by Oluwatosin Alabi

Atlantic Lithium has achieved a significant milestone as Ghana’s Ministry of Lands and Natural Resources grants a mining lease for the Ewoyaa Lithium Project, encompassing the proposed Ewoyaa Lithium Mine and processing plant. This development paves the way for the project’s progression towards commercial production.

The mining lease terms have been meticulously negotiated through close cooperation with the Government of Ghana, in alignment with the nation’s new Green Minerals Policy. This collaboration ensures the project remains highly competitive in terms of capital and operating costs, making it one of the world’s most cost-effective hard rock lithium projects.

The project demonstrates strong commercial viability and exceptional profitability potential. Over a 12-year mine life, it is projected to produce a total of 3.6 million tons of spodumene concentrate (approximately 350,000 tons per annum).

Ewoyaa is set to become one of the top 10 largest spodumene concentrate producers globally.

The main processing plant is expected to have a remarkably short payback period of just 9.5 months.

C1 cash operating costs are estimated at US$377 per ton of concentrate FOB Ghana Port, after accounting for by-product credits. The all-in sustaining cost (AISC) is estimated at US$675 per ton.

The development cost estimate for Ewoyaa stands at US$185 million, with significant funding contributions expected from Piedmont Lithium and Ghana’s sovereign wealth fund, the Minerals Income Investment Fund (MIIF).

The post-tax NPV8 is an impressive US$1.3 billion, with free cash flow projected at US$2.1 billion from life-of-mine revenues totaling US$6.6 billion.

This mining lease represents a significant de-risking milestone for the Ewoyaa Lithium Project.

Notably, it’s the first mining lease granted for lithium in Ghana, highlighting the government’s strong support for Atlantic Lithium as its ‘partner of choice’ for long-term lithium production.

This achievement marks a major milestone in Ghana’s efforts to reaffirm its status as a leading mining destination and a key player in the global decarbonization drive in Africa.

Atlantic Lithium has been granted exclusive rights to conduct mining and commercial production activities over the mining lease area for an initial 15-year period, renewable in accordance with Ghanaian legislation.

The project will be funded through strategic partnerships with Piedmont Lithium, with a competitive off-take partnering process underway to secure additional funding.

Under the terms of the Mining Lease, Atlantic Lithium has committed to listing on the Ghana Stock Exchange. The government has provided incentives to support further value addition, including studies to assess the viability of feldspar production at Ewoyaa and downstream conversion in Ghana.

The company intends to outline the next steps in the project’s development in the coming weeks.

Commenting on this significant achievement, Neil Herbert, Executive Chairman of Atlantic Lithium, emphasized the importance of the mining lease for both Ghana and Atlantic Lithium. He noted that this serves as Ghana’s statement of intent to become a leading hub in Africa’s EV supply chain through long-term lithium production, with Atlantic Lithium as its chosen partner in this endeavor.

The mining lease represents a major endorsement of the project’s viability and a landmark de-risking milestone as it advances toward production. The Government of Ghana’s cooperation has been instrumental in this process, showcasing the country’s commitment to diversify its mining industry and participate in modern mining practices.

As Atlantic Lithium looks ahead to first production, preparations are underway to ready Ewoyaa for shovel readiness, alongside ongoing efforts to de-risk and enhance the project’s value through further exploration.

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