Cabinet has given approval for Minister for Lands and Natural Resources Emmanuel Armah-Kofi Buah to review the terms of Barari DV Lithium Agreement. The development follows a request from the company for the agreement to be reviewed given the drastic drop in prices of Lithium on the world market which has seen a tonne sold for over $6,000 at the time of signing the agreement drop to $600 today.
Answering questions from Mfantsiman MP Dr. Prince Kojo Arhin, the Minister for Lands and Natural Resources disclosed the company will be re-engaged on new terms to correspond with world market prices of Lithium before ratification of the agreement by Parliament.
Speaking to the media after proceedings, the Mfantsiman MP related to the challenges of his constituents as a result of the uncertainties surrounding the project. Dr. Arhin however commended the sector Minister for his pro-activeness in getting the project underway adding the potential jobs to be created will address the youth joblessness in the area.
The Ewoyaa Lithium Project, developed by Atlantic Lithium, was set to become Ghana’s first lithium-producing mine. The Nana Addo administration however failed to secure ratification of the agreement by parliament before it lost power in 2024. The mine is owned by Atlantic Lithium, an African-focused lithium exploration and development company formerly known as IronRidge Resources.
The Ewoyaa Mine consists of eight main deposits: Ewoyaa, Okwesi, Anokyi, Grasscutter, Abonko, Kaampakrom, Sill, and Bypass. Production of lithium concentrate from the mine is anticipated to commence in the second quarter of 2025.
In August 2023, Atlantic Lithium signed an agreement with Piedmont Lithium, an American mining company, granting Piedmont a 22.5% stake in the project. As part of the deal, Piedmont committed $70m toward project development, allowing it to acquire an additional 27.5% stake, bringing its total investment to $128m.
Once operational, ownership of the mine was to be shared among Atlantic Lithium (40.5%), Piedmont Lithium (40.5%), the Minerals Income Investment Fund (6%), and the Government of Ghana (13%).
There were however many prominent voices from civil society organisations as well as former Chief Justice Sophia Akuffo who kicked against the terms of the agreement. They argued benefit to be accrued to the country was too small by way of share.
Ewoyaa Lithium Project Location
The Ewoyaa Lithium Project is situated north of Saltpond, within the Mfantseman Municipality in Central Ghana.
The mine site lies approximately 100 km southwest of Accra, the capital city of Ghana, with project deposits spread across an area of about 8km² and located 4km apart.
