Atlantic Lithium’soperation in Ghana is set to receive a major boost as the company prepares to get the nod to mine lithium.
Ghextractives.com is learning Ghana’sMinistry of Lands and Natural Resourceswill on Thursday (19 October) sign a lease agreement withAtlantic Lithium.
The signing will be graced by top officials from Atlantic Lithium as well as government officials including the Minister of Lands and Natural Resources Samuel Abu Jinapor.
In 2011, Piedmont Lithium invested US $100 million in the company to secure spodumene, or high-purity lithium ore, from Atlantic Lithium’s mine in Ghana.
Piedmont’s plans to supply lithium to electric-vehicle maker Tesla will rely in part on the lithium it plans to buy from Atlantic’s Ghana operations.
In March, short seller Blue Orca Capital alleged Atlantic Lithium obtained key Ghana mining licenses by making secret payments. The company had rejected the allegations.
Ewoyaa Lithium Project
The Company’s flagship project, theEwoyaa Lithium Project, set to be Ghana’s first lithium-producing mine, is being advanced to production under an agreement with Piedmont Lithium.
The project is well located to excellent infrastructure and is proven to produce a spodumene concentrate product suitable for conversion to be used in EV batteries.
In June 2023, the Company announced its Definitive Feasibility Study (“DFS”) for the Ewoyaa Project, confirming the Project’s economic viability and profitability potential.
The Study indicates a 3.6Mt spodumene concentrate production over a 12-year Life of Mine (“LOM”), generating exceptional economics:
Post-tax NPV₈ of US$1.5bn
Free cash flow of US$2.4bn from LOM revenues of US$6.6bn
Average LOM EBITDA of US$316m per annum
IRR of 105%
Short payback of 19 months
The DFS incorporates the Project’s 35.3Mt @ 1.25 Li₂O Mineral Resource Estimate and Ore Reserves of 25.6Mt @ 1.22% Li₂O and considers conservative LOM concentrate pricing of US$1,587/t, FOB Ghana Port.
(20min delay)