Ghana mining fund mulls multi-million investment in Atlantic Lithium

The exploration and development company is developing the Ewoyaa project in central Ghana, which would be the country’s first lithium mine.

Atlantic says the operation, which is expected to begin production in the second half of 2024, has the potential to generate nearly $5 billion in revenue over its 12.5-year life.

The MIIF confirmed plans to take an equity stake in Atlantic Lithium and said the company had agreed to list on the Ghana Stock Exchange. Atlantic Lithium said only that discussions were ongoing, adding that there was no certainty an investment will be made. 

A resource update for Ewoyaa, released early February, shows a mineral resource estimate (MRE) of 35.3 million tonnes at 1.25% lithium oxide (Li2O), including 28-million tonnes in the measured and indicated categories. 

That 79% of the resource that now falls within the measured and indicated categories is made up of 3.5-million tonnes at 1.37% Li2O in the measured category and 24.5-million tonnes at 1.25% Li2O in the indicated category. 

Ghana, known for its gold and cocoa production, has long sought to diversify its exports, and Atlantic Lithium, previously known as IronRidge Resources, believes that mining the battery metal could be a partial solution.

Prices for the ultra-light metal have surged about 10 times since the start of 2021 to almost $80,000 per tonne, reflecting supply shortages and higher demand from the car industry.

IronRidge changed its name and spinned off its gold assets into a separate company to focus on production of the battery metal, key for the batteries that power EVs and high-tech devices.