Chamber of Mines pushes for fast-track Lithium deal to unlock economic gains

By Eugene Davis

The Acting CEO of the Ghana Chamber of Mines, Ahmed Nantogmah, is urging Parliament to revisit and ratify the lithium mining lease agreement when it reconvenes from recess, citing the mineral’s vast potential to boost Ghana’s economy.

Ghana’s first lithium mining agreement, signed in October 2023 with Barari DV Ghana Limited—a subsidiary of Atlantic Lithium Ltd—grants the company a 15-year lease to extract lithium and associated minerals from the Ewoyaa project in the Central Region. The agreement includes a 10% royalty rate and a 13% free carried interest for the state. However, the deal was not ratified before the 8th Parliament was dissolved.

Parliament is expected to resume in May, and Mr. Nantogmah hopes lawmakers will prioritize the lithium deal, which he says is critical given fluctuating global market dynamics.

Speaking on Metro TV, he stressed the urgency:

“The potential is huge. If we don’t act quickly, we might lose that opportunity due to volatile market conditions.”

On whether Ghana is prepared to manage the new mineral resource, he expressed optimism:

“I think we can. This is a new mineral, and it presents a chance to get things right. The lease contains generous terms—like the 10% royalty and a community development agreement. Now that circumstances have changed, we can revisit and strengthen those provisions. But we must act decisively.”

The deal reportedly followed comprehensive feasibility studies, prospecting, and negotiations that emphasized increased state participation, local involvement, and value addition.

However, the agreement sparked public debate, with policy think tank Institute of Economic Affairs (IEA) opposing it. The IEA argued that the deal repeated historical shortcomings of previous mineral agreements and called for its reassessment.

Ghana, the continent’s leading gold producer, aims to capitalize on the global electric vehicle (EV) boom through the Ewoyaa mine. With an estimated 35–40 million metric tons of lithium-bearing ore, the project is expected to become one of the top 10 global producers of spodumene concentrate. Annual output is projected at 360,000 tons of lithium, primarily for export to the U.S.

However, delays in parliamentary approval and a sharp fall in global lithium prices have stalled the project’s progress. While prices have recently shown signs of recovery, buoyed by a rebound in global automobile production, industry analysts remain cautious about the project’s viability and timeline.