Atlantic Lithium Limited has announced significant workforce reductions, attributing the decision to delays in the ratification of its Ewoyaa Mining Lease and declining global lithium prices. The move, the company explained, is part of a strategic effort to reallocate resources to critical activities essential for advancing Ghana’s first lithium mine.
The update was shared during the company’s 2024 Annual General Meeting.
Delays Impacting Progress
“The ratification of the Mining Lease is the final regulatory step needed for the company to begin operations at Ewoyaa. We had expected this to be completed by now, but with elections in Ghana approaching, political uncertainties have delayed parliamentary processes, stalling our progress,” said Keith Muller, Chief Executive Officer of Atlantic Lithium.
The delay, combined with a sluggish lithium pricing environment, has compelled the company to implement broad cost-cutting measures, including a reduction in employee headcount. These steps are aimed at ensuring that resources are directed toward activities critical to the project’s advancement.
Milestones Amid Challenges
Despite the setbacks, the company has achieved significant milestones, including securing environmental permits and progressing with feasibility studies. Atlantic Lithium also remains engaged in ongoing funding discussions to support project development.
“We are steadfast in our commitment to securing funding under favorable terms, even amid current market pressures. The Minerals Income Investment Fund and other partners have been instrumental in supporting us during this period,” Muller noted.
Optimism for the Future
Atlantic Lithium remains optimistic about the long-term demand for lithium and expects a clearer regulatory path after Ghana’s elections. The company continues to refine technical studies and secure contracts necessary for its Final Investment Decision (FID).
“While current market conditions are challenging, demand for lithium from Ewoyaa remains strong among potential offtakers. We are confident in securing the funding needed to cover our development expenditures without compromising shareholder interests,” Muller added.
The company’s focus remains on ensuring the Ewoyaa project is well-positioned to capitalize on future opportunities as it navigates the regulatory and market challenges ahead.
