The Ghanaian government has granted a 15-year Mining Lease to Barari DV Ghana Limited, a subsidiary of Atlantic Lithium Limited, allowing the construction and mining of lithium in Ewoyaa, Central Region. The Lease includes new terms aimed at ensuring optimal benefits for the country, including an increased royalty rate, state and Ghanaian participation, and value addition to the mined mineral.
Lithium is a crucial mineral used in the production of lithium-ion batteries, which are being promoted as a substitute for fossil fuels to combat climate change. The emerging green energy transition and the phasing out of fossil fuel vehicles by some countries have created a growing market for lithium and other critical minerals.
Barari Ltd. initiated lithium exploration in Ghana in 2017 and discovered high-grade lithium in Ewoyaa. Although there are lithium deposits in various parts of the country, mining has not yet begun.
The Minister for Lands and Natural Resources, Samuel A. Jinapor, explained that the government decided to treat lithium differently from other minerals and developed a special policy for its exploitation. The Lease incorporates the policy, which Cabinet approved.
Under the agreed terms, the royalty rate has been increased from 5% to 10%, and the state’s free carried interest has been raised from 10% to 13%. Additionally, the Minerals Income Investment Fund (MIIF) will acquire an additional 6% in the mining operation and a 3.06% stake in the company’s parent entity, listed on the Australian and London Stock Exchanges. The company will also be required to list on the Ghana Stock Exchange.
Barari DV Ltd. will contribute 1% of its revenue to a Community Development Fund to support affected communities and aims to establish a chemical plant for lithium processing. If the company cannot establish a plant, it will provide its lithium to third-party chemical plants in the country.
The government aims to ensure that mining communities and Ghanaians benefit from the mining operation and has urged responsible, sustainable, and environmentally sound practices.
The Executive Chairman of Atlantic Lithium Limited, Mr. Niel Herbert, expressed gratitude for the cooperation with the government and pledged the company’s commitment to adhering to the laws and ensuring a safe mining environment.
Source: Graphic Online