Economy

Atlantic Lithium Ghana mine plans share listing

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By Eugene Davis

Australia-based Atlantic Lithium set to become Ghana’s first Lithium producing mine has announced plans to list on Ghana’s Stock Exchange soon, as it prepares to begin production in the second half of 2024, the company’s Head of Business Development & Chief Geologist, Lennard Kolff told participants at this year’s Ghana Mining and Energy Summit.

Atlantic Lithium has submitted its Mining Licence application to the Minerals Commission of Ghana and is working towards a Definitive Feasibility Study in 2023.

Speaking as a panelist at the recently held 2023 Ghana Mining and Energy Summit under the auspices of the Ghana Chamber of Mines in Accra, he said “We have been in discussions with the Ghana Stock Exchange and indeed it is a requirement under the Mining Regulations to list of the Stock Exchange once in production.”

According to Mr. Kolff, this will present an opportunity for all Ghanaians to benefit from lithium mining in Ghana through the Stock Exchange and “we certainly welcome Ghanaian investors on the register.”

Already, the state-owned investment fund, Minerals Income Investment Fund (MIIF) have expressed interest in coming on board, Mr.Kolff disclosed.

Further he also revealed that “The country is now getting ready to deliver its feasibility study at the end of this quarter (end of this month) we are going through permitting process for this exciting project.

Hopefully next year, I am going to stand here and tell you about the groundbreaking ceremony and permit for the project.”

Lennard Kolff  had also said that a recent scoping study showed revenue could reach nearly $5 billion over the mine’s lifetime.

Lithium prices have soared above $70,000 per tonne this year, as automakers keen to shift to electric models scramble to secure supply to make batteries.

Ghana, historically one of Africa’s top gold and cocoa producers, has long sought to diversify its exports, with large swings in gross domestic product often accompanying shifts in gold or oil revenue.

A pre-feasibility study of the project, released late last year , projected up to $4.84 billion in revenue over the site’s 12.5 year lifespan, with an initial rate of return of 224% and payback in less than five months.

The project is well located to excellent infrastructure and is proven to produce a premium SC6 product suitable for conversion to be used in batteries.

In September 2022, the Company announced a robust Pre-Feasibility Study (“PFS”) for Ewoyaa, based on the March 2022 Mineral Resource Estimate (“MRE”), indicating a post-tax NPV of US$1.33bn, Life of Mine revenues exceeding US$4.84bn and an IRR of 224%.

In February 2023, Atlantic Lithium further increased the Mineral Resource Estimate (“MRE”) at Ewoyaa to 35.3Mt at 1.25% Li₂O, including 28Mt in the Measured and Indicated categories.

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