The government has granted Barari DV Ghana Limited, a subsidiary of Atlantic Lithium Limited, a 15-year Mining Lease to commence the construction and mining of lithium at Ewoyaa in the Mfantseman area of the Central Region of Ghana.
The Lease incorporates new and enhanced terms intended to ensure that the country benefits, optimally, from this mineral. This includes an increase in royalty rate, State and Ghanaian participation, as well as value addition to the mineral mined.
The granting of the Mining Lease follows the completion of prospecting and feasibility studies by the company, as well as series of negotiations between Government and the Company. The Lease covers an area of approximately 42.63 square kilometres, and grants the company the exclusive right to work and produce lithium and associated minerals in the area, in accordance with the mining laws of the country.
Lithium is one of the main minerals used in the production of lithium-ion batteries, which is being promoted as a substitute for fossil fuels, as the world continues to battle with climate change. Emissions from the burning of fossil fuels by the internal combustion engines have been identified as one of the major contributors to the climate crisis. To deal with this, global leaders are promoting a green energy transition, to progressively limit, and ultimately, eliminate carbon emissions.
Already, some countries have passed laws to phase out vehicles that use fossil fuels. This has created an emerging market for the battery industry, and minerals required for the production of batteries, referred to as green minerals or critical minerals.
Currently, African countries that are mining lithium export the mineral in its raw state.