Amid attempts by Atlantic Lithium for sweeping fiscal concessions on the Ewoyaa Lithium Project, an analysis by the Natural Resource Governance Institute (NRGI) is challenging the basis for the company’s demands for the renegotiation.
Country Manager of NRGI, Denis Gyeyir, is revealing that a modelling conducted by the Institute confirms that the project remains profitable, even at current low world lithium prices.
In an exclusive interview with The High Street Journal, the NRGI Country Manager argued that the financial outlook based on the current prices doesn’t support the deep concessions Atlantic Lithium is seeking.
“We have modelled the lithium returns and have seen that an internal rate of return of about 25% would be enough for the project to proceed. So, in simple terms, the profitability of the project would be guaranteed if the investor makes a 25% profit on the investments that they make, or return, that is what we call a return,” he told The High Street Journal.
He continued that, “Even at the current lithium price, the company could get a 25% return. And that, even if you add other elements, you could be getting as high as 28% returns. That is what our model is telling us.”
Since lithium prices began their steep descent in late 2022, Atlantic Lithium has argued that the project’s viability has been significantly undermined. As a result, the company has requested several concessions from the Ghanaian government, including a 50% reduction in royalties, tax waivers, and other financial reliefs to salvage what it claims are diminishing prospects.
But according to Gyeyir, the facts don’t align with the narrative of unprofitability.
Although the NRGI boss concedes that the prices have indeed fallen. However, that doesn’t automatically justify the kinds of concessions they’re requesting.
This analysis, Denis Gyeyir says, shows that the project is still bankable. The expected profitability has dipped, but the project is far from unviable.”
It is worth noting that Gyeyir was clear that if Atlantic Lithium is facing additional pressures, like unforeseen operational costs or new infrastructure demands, they must come clean and disclose these variables to justify any fiscal rebalancing.
“If there are other elements that are impacting the cost of operations of Atlantic Lithium that they haven’t disclosed, then that is fair. Otherwise, all the information that we are going to assure is that the project can still proceed, even though the returns would have reduced significantly. The project can still proceed,” he indicated.
Ghana’s Ewoyaa Lithium Project is its flagship entry into the critical minerals space. As the renegotiation calls mount, the NRGI is emphasizing that it must be rooted in transparency, fairness, and solid data, not fear or corporate pressure tactics.
