Policy analyst Bright Simons has sharply criticised the government’s move to amend lease terms for Ghana’s flagship lithium project at Ewoyaa, operated by Atlantic Lithium, branding the proposal as potentially “economic treason.”
The project, located in the Central Region, previously attracted heavy public backlash over what critics described as an overly generous deal favouring Atlantic at Ghana’s expense. Under the original agreement, Ghana was to receive a 10% royalty and a 13% carried interest.
However, according to Simons, Atlantic is now lobbying to reduce the royalty to 5%, cut corporate taxes, and remove or significantly reduce other levies. In a social media post, Simons questioned the rationale behind the revisions.
“If 10% royalty and standard taxes were labelled ‘colonial’ by critics last year, what would 5% and tax waivers be called, economic treason?”
Atlantic Lithium has argued that a drop in global lithium prices has made the current terms unsustainable, but Simons dismissed this justification. He pointed to operational delays and funding challenges faced by Atlantic even before market prices fell.
“They claim price drops have forced a pause, but I visited the mine last year and local residents said the site had already been inactive. The problems go beyond prices, they’re facing funding delays from their main partner, Piedmont, and struggling to secure off-taker contracts,” he said.
He cited market data showing that the price of spodumene concentrate the lithium-bearing ore set for export has fallen to $711 from previous highs but remains close to levels recorded when Atlantic was lobbying Parliament for ratification last year.
“There’s been virtually no significant change in the pricing landscape from August 2024 to now. So why the sudden rush to lower Ghana’s share?”
“If Parliament had approved the lease last November when the price was $771, the mine still wouldn’t have been built,” Simons argued.
He further criticised the opaque nature of the renegotiation process and called on government to publish the Mines Minister’s advisory memo to Cabinet.
“The government must come clean. Let’s have a public debate on the new proposed terms.”
Simons also urged government to release the draft Green Minerals Law and long-promised Green Minerals Policy, which were in development under the previous administration, to guide critical decisions on Ghana’s emerging battery minerals sector.
Highlighting opportunities for value addition, he noted “The conversation should be about refining capacity too. While spodumene prices may stay flat due to Chinese oversupply, lithium hydroxide, a refined salt, could see a 102% price increase by 2028. We should be planning around value addition.”
As Parliament and Cabinet deliberate the Ewoyaa project’s future, Simons’ warnings are likely to reignite debates over how Ghana secures equitable returns from its critical minerals and battery metal resources.
