By: Ecofin agency

On Friday, March 20, Australian company Atlantic Lithium announced that Ghana’s Parliament officially ratified the mining lease for its Ewoyaa project. This approval grants the company all necessary permits to launch construction of what is set to become the country’s first lithium mine.

Authorities structured the Ewoyaa mining lease under a 2023 agreement with the Ghanaian state. However, the lease required parliamentary ratification to enter into force.

The process faced delays due to extended procedures and disagreements over certain terms of the mining convention. Now that Parliament has ratified the license, which carries an initial term of 15 years, the company can move toward a final investment decision (FID) and begin the construction phase.

“The ratification constitutes the formal approval by the Parliament of Ghana of the Ewoyaa lithium mine project and its processing plant, allowing the company to continue financing discussions and to progress toward a final investment decision,” the company said in a statement.

Atlantic Lithium plans to develop Ewoyaa into a mine capable of producing a total of 3.6 million tons of spodumene concentrate over a 12-year period.

To achieve this objective, the company must raise $185 million alongside its joint venture partner, Elevra Lithium.

Before reaching FID, the company must complete ongoing technical studies related to the project. The company launched these studies last year to define the project’s development path and identify key steps ahead of the investment decision.

However, the company has not provided a timeline for releasing the results, as lithium prices remain under pressure.

With the mining lease now ratified, Ghanaian authorities will closely monitor the project’s progress. If completed, Ewoyaa will position Ghana alongside Zimbabwe and Mali among Africa’s lithium producers, a key resource for the energy transition.

The project will also generate new mining revenues through taxes and royalties, as well as dividends from the state’s 13% equity stake in the operation.