For the hundreds of residents in and within the catchment area of Ghana’s first lithium mine, there is a promise of a multi-million-dollar compensation set aside to rebuild their lives.
Despite the uncertainties that surrounded the project, it is emerging that about $54 million has been budgeted to be spent on compensation and resettlement of the affected communities.
According to the General Manager of Atlantic Lithium, Ahmed Salim Adam, who was speaking to some fellows of the Africa Extractives Media Fellowship (AEMF), as negotiations intensify following the ratification of the Ewoyaa Lithium Agreement, the company estimates that about a $20 million will be spent on compensation.
In addition, an estimated $34 million is expected to be spent on the resettlement of the two affected communities.
At the center of the process are the Ewoyaa and Krampakrom communities, which are expected to be relocated entirely to pave the way for the country’s first major lithium mining operation.
The compensation package is expected to cover destroyed or inaccessible farmlands, crops, homes, and other economic assets affected by the project.
Since December 2023, a moratorium placed on land use in the project area has significantly disrupted economic activity. Farmers cultivating cocoa, cashew, pineapple, and other crops say they have been unable to fully utilize their lands while negotiations dragged on.
However, the company says that, given the delays in the ratification of the project, farmers were allowed to use the land in the meantime. Moreover, there is a promise to allow them to harvest their crops before the land use begins.
According to the General Manager, the prolonged delay in parliamentary ratification of the mining lease also slowed discussions around compensation and resettlement, leaving many residents in limbo for months.
However, with the agreement ratified, negotiations have intensified. A 65-member compensation negotiation committee has been constituted to engage communities, traditional leaders, government agencies, and the company on how compensation payments and relocation plans will be implemented.
Residents are demanding that compensation arrangements be finalized quickly and transparently before any major project development begins.
Beyond cash payments, the bigger concern for many affected families is whether relocation plans will genuinely restore their livelihoods.
Atlantic Lithium says the resettlement budget of $34 million is expected to fund the construction of new homes, roads, schools, social amenities, and farming lands for displaced residents.
The Ewoyaa Lithium Project is projected to operate for about 12 years and is expected to position Ghana as a key player in the global lithium supply chain, driven largely by rising demand for electric vehicle batteries and renewable energy storage.
