Policy think tank IMANI Africa has called on Ghana’s Parliament to reject the Atlantic Lithium mining lease for the Ewoyaa project, arguing that the two year delayed agreement remains fundamentally flawed and could deprive the country of fair value from its lithium resources.
The mining lease, submitted to the Parliamentary Select Committee on Lands, Forestry and Mines during the fourth week of business ending November 14, 2025, has sparked intense debate among policymakers, traditional leaders, and civil society organizations. IMANI’s latest criticality analysis titled “The Atlantic Lithium (Ewoyaa Project) Deal: Why Ghana’s Parliament Should Not Ratify a Flawed Agreement” identifies five critical weaknesses that could undermine Ghana’s economic interests.
The think tank’s primary concern centres on volatile lithium prices threatening national revenue. When Ghana initially signed the deal in October 2023, lithium prices stood at record highs around 2,800 US dollars per tonne, and the project’s financial projections relied on that momentum. Prices have since collapsed to approximately 900 dollars per tonne, exposing the risks of tying royalties to the company’s realized sales price rather than an independent benchmark.
IMANI argues that when global prices fall, Ghana’s earnings collapse proportionally while Atlantic Lithium and its partners can still profit through internal pricing arrangements. Without a flexible pricing formula or independent benchmark, the country could earn far less than expected. The analysis emphasizes that Parliament must ensure the contract protects national revenue when market conditions change rather than leaving it vulnerable to global price swings.
The promised local refining remains aspirational rather than concrete, according to IMANI’s review of the company’s feasibility study. Government officials promoted the Ewoyaa project as a pathway to local processing that would transform raw lithium into battery grade material within Ghana. However, the feasibility study reveals that a refinery would only be viable if at least three mines of similar size were developed or if government provided substantial financial incentives.
The think tank warns lawmakers against accepting another aspirational clause that promises beneficiation but delivers nothing. IMANI insists Parliament must demand either a clear plan to make refining possible or acknowledge honestly that it will not happen under current conditions.
Atlantic Lithium’s capacity raises additional red flags, according to the analysis. The junior mining company operates with limited funds and experiences share price volatility. The project relies heavily on larger partners including Piedmont, now known as Elevra Lithium, and Ghana’s Minerals Income Investment Fund (MIIF) to move forward. The two year delay since the initial agreement demonstrates the company’s weakness and financing uncertainty.
IMANI recommends that Parliament include performance guarantees, deadlines for financial closure, and step in rights allowing Ghana to take control if the operator fails to deliver. Without such safeguards, the country would be gambling its resources on a partner potentially lacking the strength required for successful execution.
The Minerals Income Investment Fund’s investment requires careful protection, IMANI cautions. While MIIF holds the country’s equity stake and represents patriotic intent for Ghana to participate directly in its minerals, the sovereign capital belongs to all Ghanaians and demands protection. Without anti dilution clauses, clear valuation rules, and board representation, Ghana’s stake could be quietly eroded or mispriced over time.
IMANI stresses that MIIF should function as an active watchdog ensuring fair benefits rather than becoming a passive investor waiting for dividends that may never materialize. The government secured a 19 percent equity stake comprising 13 percent free carried interest and an additional 6 percent through MIIF, while raising the royalty rate from 5 percent to 10 percent and requiring local stock exchange listing.
Rapidly evolving battery technology and increasingly efficient recycling present additional concerns. IMANI reminds Parliament that lithium’s current status as a hot commodity may not persist. A rigid, long term contract unable to adapt to new technologies or market realities could leave Ghana stuck with outdated terms long after the market has evolved.
The think tank urges lawmakers to insist on adaptive clauses including royalty bands that rise or fall with prices, renegotiation options when technology shifts, and rights of first refusal for future refining and recycling initiatives. Without these provisions, Ghana risks signing an agreement that benefits others after the market has moved on.
Former Lands and Natural Resources Minister Samuel Abu Jinapor raised objections about terms he claims are less favorable than the agreement his administration negotiated. The indications suggest the current agreement contains a lower royalty rate than the 2024 version, creating worry among industry players.
The Paramount Chief of the Nkusukum Traditional Area, Okogyeman Okese Essando IX, described the project as the hope of people in Mfantseman and Nkusukum, warning that prolonged delays worsen hardship and frustration among affected communities including Ewoyaa, Amanse, Nankesedo, Anokye, Abonko, and Twafo. Residents remain unable to farm or build on lands taken for the project while awaiting the final decision.
Atlantic Lithium Chief Executive Officer Keith Muller expressed hope that swift ratification would serve as a key catalyst for project financing and development. The company has invested approximately 70 million dollars since 2016 into developing what would become Ghana’s first lithium mine, located 100 kilometers southwest of Accra in the Central Region.
IMANI maintains that despite agitation from Atlantic Lithium, community members, and some Ghanaians over the delays, the two year pause since the first deal gives Ghana rare leverage to demand a fairer, smarter contract. The project has not yet begun, lithium prices have slumped, and the company’s weaknesses stand exposed, all pointing toward the need for complete rethinking rather than rushed ratification.
Source: newsghana.com.gh
