Ghana greenlights first lithium mine with eye on electric vehicle boom

Reuters | 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 6 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 maximize the economic benefit of a mineral it has often shipped to China for processing, the ministry added.

Atlantic Lithium declined to comment.