Lithium mine to open in Ghana

A new lithium mine is about to open in Ghana, under the company Barari DV Ghana Limited, a subsidiary of Atlantic Lithium Limited. A 15-year mining lease has been granted, with special provisions for the country to profit from the mining operation.

The way is clear for the first lithium mine in Ghana. The government of Ghana has signed a mining lease agreement for the mine with Barari DV Ghana, a subsidiary of Atlantic Lithium, for a period of 15 years. Under the agreement, Ghana will increase the royalty from the usual five per cent to ten per cent and the state’s stake in the project from ten per cent to 13 per cent.

In addition to the state’s share, Ghana’s Minerals Income Investment Fund will acquire a further six per cent in the mining operation and 3.06 per cent in Atlantic Lithium. It was also agreed that the company will contribute one per cent of its revenue to a Community Development Fund to be used for the development of communities affected by the operation, and will work to establish a chemical plant to process lithium.

In the event that the company is unable to establish a chemical plant, it will supply its lithium to any chemical plant established by third parties in the country. The lithium mine in Ghana is expected to come online in the second quarter of 2025, as reported, and reach its full production capacity of 365,000 tonnes of lithium per year in 2026.

A special policy was put in place for the “exploitation and management of green minerals”, as the Minister for Lands and Natural Resources, Samuel Jinapor, explained: “The Lease we are signing today differs from our standard Mining Lease, in that, it incorporates the agreed terms we have concluded with the company, based on the Policy approved by Cabinet.” The terms specifically charge higher royalty fees for the mineral, going up from the standard 5 to a 10 per cent rate, while the state “free carried interest ” in the mine has been upgraded from 10 to 13 per cent.

The extra fees are not the end of the special treatment of the mineral, as “the Minerals Income Investment Fund (MIIF), will acquire [an] additional six per cent (6%) in the mining operation, as well as a 3.06% in the Company’s parent entity, which is listed on the Australian and London Stocks Exchange.” The company will also have to register on the Ghana Stock Exchange, as well as pay into a Community Development Fund, to “create more jobs and bring more development into the mining communities and the country at large.”

mlnr.gov.gh