Atlantic Lithium sees capital costs soar to deliver Ghana’s first lithium mine

Lithium exploration and development company Atlantic Lithium Limited has today released the results of its Definitive Feasibility Study (“DFS” or "Study”) for the Ewoyaa Lithium Project (“Ewoyaa”), on track to become Ghana’s first lithium mine.

The DFS indicates that Ewoyaa will produce a total of 3.6 million tonnes of highly-sought after spodumene concentrate over a 12-year mine life.

Despite representing a major step towards the delivery of the project, the Study outlines a significant increase in the costs required to construct the mine, an Internal Rate of Return less than half of the figure envisaged in the Pre-Feasibility Study the company released for Ewoyaa in September 2022, and an extension to the total payback period to nearly two years.

Significant delays to the delivery of the project could also result in the company being unable to capitalise upon strong current lithium prices, in turn, negatively impacting the project’s financial outcomes.

The company has committed to supporting the development of the Central Region via a community development fund, where 1% of the project’s retained earnings will be apportioned to local initiatives and infrastructure. As such, any reduction in returns would have a knock-on effect locally.

According to the DFS, over 800 new direct jobs are expected to be created at Ewoyaa. Local service providers and businesses associated with the mining sector are also set to benefit from Atlantic Lithium’s compliance with Ghana’s Local Content regulations.

Additionally, the company is exploring the opportunity to supply the mine’s feldspar by-product to the Ghanaian ceramics industry, with the aim of fostering economic growth that will continue long after the expected life of the mine.

Atlantic Lithium, which currently awaits the grant of the Mining Lease application it requires to advance the project towards construction, believes that Ewoyaa will put Ghana on the global stage for lithium production.

Keith Muller, Chief Executive Officer of Atlantic Lithium, commented:

“The Definitive Feasibility Study significantly de-risks the Ewoyaa Lithium Project and reaffirms its impressive economic potential. Atlantic Lithium is committed to driving long-term positive change for our stakeholders in Ghana by utilising local businesses and service providers, implementing industry-leading practices and empowering the local workforce.

"Currently over 95% of our employees are Ghanaian, with the majority coming from the Central Region. Despite already being one of the largest taxpayers and the leading employer in the Region, the Definitive Feasibility Study indicates the opportunity to create an additional 800 jobs at Ewoyaa.”