GHANA’S government has approved its first lithium mine run by a subsidiary of Australia-based Atlantic Lithium Limited, the West African country said on Thursday, part of its drive to benefit from a global move towards electric vehicles.
The Ministry of Lands and Natural Resources granted Barari DV
Ghana Limited a 15-year lease on the mine at Ewoyaa, on Ghana‘s southern coast, where the company began exploring for lithium six years ago.
The prospect is highly valued by Ghana as it seeks to play a role in producing a key ingredient in electric vehicle batteries, demand for
which is soaring as countries look to phase out fossil-fuel cars.
As part of the deal, Ghana has increased the royalty rate to 10 percent from the standard 5 percent and the State’s interest in the project to 13 percent from 10 percent, the ministry said in a statement.
On top of the State’s stake, Ghana‘s Minerals Income Investment Fund will acquire another 6 percent in the mining operation, and 3.06 percent in Atlantic Lithium.
The company will also work on developing a lithium processing plant to maximise the economic benefit of a mineral it has often shipped to China for processing, the ministry added.
