It’s been two years since the lease agreement for the Ewoyaa Lithuim Project was signed; however, within the same period, parliament has failed to ratify the agreement as required by law, but it seems there’s hope for the company for this year.
After two years of waiting, Atlantic Lithium says it is finally seeing light at the end of the tunnel.
The company’s General Manager, Ahmed Salim Adam, is confident that Ghana’s Parliament will ratify the Ewoyaa Lithium Project lease agreement before the year ends to pave the way for the country’s first major lithium production.
Speaking to The High Street Journal on the sidelines of the Africa Extractives Media Fellowship on Thursday, Ahmed Adam said the company has been patient but hopeful, although efforts to get parliament to endorse the agreement proved futile, mainly due to external circumstances beyond them.
“We’ve been waiting for two years. It’s our anticipation that this doesn’t, we hope that this doesn’t drag on beyond this year. The hope is that we will achieve ratification by the end of the year. I’m very optimistic that that happens,” the general manager indicated.
He notes that once ratification is secured, Atlantic Lithium’s board will review the investment decision before construction begins. The construction process, he says, is expected to take between 18 and 24 months.
Only after that will production begin and eventually result in cash flows after years of massive investments running into millions of dollars.
For the general manager, what makes the Ewoyaa Project particularly significant is the government’s 13 percent free carried interest. This means Ghana holds an automatic equity stake without having to invest up front.
Beyond that, there’s also room for the Minerals Income Investment Fund (MIIF) to invest directly, a move he hopes will be confirmed soon. This, he says, will give the government a seat at the table.
“We’ll get our board to take a second look at an investment decision. And then we can break ground. And then there’s about 18 to 24 months of construction. And then we start production. We only pay dividends when we start production, and then we make a profit,” he indicated.
He added, “What is significant with our project is that the government has a significant stake. 13% free carry as we know it. And there’s an opportunity also for MIF to invest. They will make up their mind very soon, I’m sure. I’m hopeful that they do and they come on board. And so the government has a significant stake. And so it’s not just about taxes anymore. It’s also about having a stake and being in the boardroom.”
The Ewoyaa Lithium Project, located in Ghana’s Central Region, has been hailed as a potential game changer for the country’s emerging green minerals sector.
If approved, it could position Ghana as a key player in the global battery supply chain, driving job creation, revenue, and sustainable mineral development.
