Policy think tank IMANI Africa, alongside other civil society organisations (CSOs), has pledged to champion the cause of Ghanaians concerned over a mining deal granted to dual-listed Atlantic Lithium, asserting that it falls short of public expectations.

In October, the Africa-focused miner was granted a 15-year mining licence to start constructing a mine at its flagship Ewoyaa project in the Central Region, after nearly six years of exploration that has discovered high-grade lithium in commercial quantities.

A definitive feasibility study (DFS) for Ewoyaa outlined production of 3.6mn tonnes of spodumene concentrate, free cash flow of $2.4bn from $6.6bn life of mine revenues, a post-tax NPV of $1.5bn and an internal rate of return (IRR) of 105%. First production is targeted for 2025.

IMANI, in collaboration with stakeholders, has raised concerns about the drafted agreement, asserting that it requires revisions to better align with the interests and benefits of Ghanaians, reports Citi News.

In a pilot brief, IMANI called upon the government to ensure that the right royalties are provided for the West African country from the $250mn project.

The current terms of the deal include a 10% royalty and a 13% free carried interest in the state, surpassing the existing percentages of 5% and 10%, respectively, stipulated in other mining agreements.

"As Parliament gets ready to deliberate on the agreement, expect CSOs to champion the cause of Ghanaians. There can be no compromise on the position that the agreement, as currently drafted, does not meet public expectations. The government will do well to listen," Citi News quoted the IMANI brief as saying in part.

AIM- and ASX-listed Atlantic Lithium is working on delivering the first lithium mine in Ghana after securing the 15-year mining lease. 

The project is to be funded by strategic partnerships with Piedmont Lithium and the Minerals Income Investment Fund (MIIF), a Ghanaian sovereign fund, with a competitive offtake partnering process underway to secure project funding for a portion of the remaining 50% available feedstock.

The Ewoyaa mine will be Africa’s first major lithium project without Chinese funding. In September, MIIF announced an investment of $32.9mn in Atlantic and its local subsidiaries to acquire a 6% contributing interest in the Ghana portfolio conditioned on the miner listing on the Ghana Stock Exchange (GSE).