Ghana to Review Ewoyaa Lithium Project Agreement as Prices Plunge Over 80%
The Ghana Chamber of Mines has welcomed government’s decision to review the country’s maiden lithium mining agreement with Barari DV Limited, a subsidiary of Australia’s Atlantic Lithium Limited, nearly two years after the deal was first announced.
The review comes as the Ewoyaa Lithium Project faces severe economic challenges following an 80% drop in global lithium prices since their 2022 peak. Current prices have fallen below US$675 per tonne — roughly equal to the project’s estimated production costs — making the existing revenue framework economically unsustainable.
Minister for Lands and Natural Resources, Emmanuel Armah-Kofi Buah, confirmed that his ministry will present a revised memorandum to Cabinet and, subsequently, to parliament to secure the project’s viability.
“The ministry has notified Cabinet of the company’s request. A revised memo will be submitted for Cabinet’s consideration and onward transmission to parliament to ensure the project’s survival,” the minister stated.
Barari DV Ghana Ltd., the local operator, formally requested the review from the Minerals Commission, citing the sharp market downturn.
The original 15-year mining lease, granted in October 2023, was submitted to parliament for ratification in 2024 but was not approved before the House adjourned for the general elections. The lease has since lapsed, prompting renewed negotiations.
Ghana Chamber of Mines COO, Ahmed Dasana Nantogmah, said the Chamber supports the government’s approach.
“Considering the price drop from about US$3,000 to as low as US$600 per tonne, a review of the initial lease terms is necessary to make the project more competitive,” he said. “We’re optimistic that the current parliament will ratify the revised agreement at the earliest opportunity.”
According to the Chamber’s 2024 performance report:
Total fiscal payments from the mining and quarrying sector reached GH¢17.7 billion, representing 24.3% of direct domestic tax revenue.
Mineral exports brought in US$11.9 billion — exceeding earnings from crude oil (US$3.9 billion), cocoa (US$1.9 billion), and inward remittances (US$6.7 billion) combined.
The Bank of Ghana reported that mining accounted for 58.4% of gross merchandise export earnings.
Of the US$7.1 billion in mineral revenue generated by producing member companies, US$4.9 billion (70.8%) was repatriated through the Bank of Ghana and commercial banks.
Chamber CEO, Dr. Kenneth Ashigbey, emphasized that these proceeds remain a major source of foreign exchange liquidity, helping stabilize the cedi.
In 2024, member companies also:
Sold 358,218 ounces of gold to the central bank under the Domestic Gold Purchase Programme (DGPP).
Spent US$5.5 billion on goods, services, taxes, and other obligations — with US$3.5 billion allocated to local procurement and US$28 million to corporate social investments.
The Chamber stressed that the Ewoyaa project’s success is critical not only for Ghana’s emerging lithium industry but also for sustaining the broader economic contributions of the mining sector.
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