IMANI warns Parliament against ratifying “flawed” lithium agreement

The proposed lithium mining deal between Ghana and Atlantic Lithium Ltd. is facing intense scrutiny, with experts warning Parliament against ratifying an agreement that could cost the country dearly.

The Ewoyaa project, touted as “unprecedented” and “transformational,” has been stalled for two years, and a revised agreement is set to be tabled before Parliament.

However, IMANI Africa, a think tank, is cautioning against hasty approval, citing “structural weaknesses” in the contract.

The definitive feasibility study for Ewoyaa assumed a long-term lithium concentrate price of US$1,500 per tonne, but global prices have since collapsed to around US$900 per tonne.

According to IMANI, this exposes Ghana to significant revenue risks, as royalties are tied to the operator’s “realized sales price” without independent benchmarks.

“Ghana risks locking itself into a revenue model that evaporates whenever markets turn, leaving the nation poorer while related party offtakers quietly profit,” IMANI Africa warns.

The think tank also questions the viability of local refining, citing the feasibility study’s conclusion that building a refinery would require at least three mines of similar scale or significant government incentives.

IMANI said Atlantic Lithium is a junior miner with limited cash reserves and a volatile share price, making it a risky partner for Ghana.

The think tank also said the Atlantic Lithium’s dependence on Piedmont (Elevra) and sovereign investors like the Minerals Income Investment Fund (MIIF) exposes Ghana to execution risk.

It further warned that the global lithium market is also highly volatile, with evolving battery chemistries and recycling technologies.

IMANI said a rigid contract could leave Ghana stranded as global supply chains shift.

IMANI Africa urged Parliament to demand a contract that secures Ghana’s rightful share of value across the lithium supply chain.

“Ratify only if the concerns are addressed in substance, not in slogans. Anything less would be to ratify not progress, but peril,” the think tank warned.