The Barari DV Ghana Limited, a subsidiary of Atlantic Lithium Limited, has been granted a 15-year mining lease to mine lithium at Ewoyaa in the Mfantseman Municipality of the Central Region.
The lease, which covers an area of approximately 42.63 square kilometres, enables the company to produce lithium and associated minerals in the area, in accordance with the country’s mining laws.
The granting of the lease followed the completion of prospecting and feasibility studies by the company, as well as series of negotiations between the government and the company.
The lease incorporates new and enhanced terms, including an increase in royalty rate, provides for state and Ghanaian participation, as well as value addition to the lithium mined.
At a ceremony to sign the lease in Accra yesterday, Minister of Lands and Natural Resources, Samuel A. Jinapor, said Barari Limited commenced exploration for lithium in the country in 2017 and discovered high grade lithium in commercial quantities in Ewoyaa.
Following the exercise, he noted that, the government developed a new policy for the exploitation and management of lithium and other green minerals, which also incorporated the policy approved by Parliament.
He said, the lease, which differed from the standard mining lease, incorporated the agreed terms concluded with the company, based on the policy, to ensure Ghanaians realise greater value in the mining of the mineral.
Among the new terms, he stated was an increase in both the royalty rate and government’s carried interest to 10 per cent from five per cent and from 10 per cent to 13 per cent respectively.
Additionally, Mr Jinapor said the government, through the Minerals Income Investment Fund (MIIF), would acquire additional six per cent in the mining operation, as well as a 3.06 per cent in the company’s parent entity, which was listed on the Australian and London Stocks Exchange.
“The company would also be required to list on the Ghana Stock Exchange to ensure that Ghanaian entities, like pension funds, and individuals who want to invest in this business can participate in it,” he stated.
Also, the company, he noted was expected to pay one per cent of its revenue into a Community Development Fund, to be utilised for the development of communities impacted by their operations, and in addition to working to establish a chemical plant for the processing of lithium.
“In the event that the company is unable to establish a chemical plant, the company will provide its lithium to any chemical plant established by third parties in the country. This will create more jobs and bring more development into the mining communities and the country at large,” the minister added.
He said government recognises the impact of mining on mining communities, and was committed to ensure that these communities and Ghanaians at large benefit from mineral.
Mr Jinapor called on the company to adhere strictly to Ghana’s mining laws and the agreement reached with government, and to ensure that they engage in responsible, sustainable and environmentally-sound mining practices.
Lauding government’s cooperation on the project, Executive Chairman of Atlantic Lithium Limited, Niel Herbert, said the company was working toward investing about US$250 million in its operations by 2025.
The Ewoyaa project, he noted was an important investments that would ensure Ghanaians benefit from lithium exploration.
He pledged the commitment of the company to abide by Ghana’s law, and ensure a safe mining environment.
BY CLAUDE NYARKO ADAMS
