Atlantic Lithium is in ongoing discussions with the Ghanaian Government to review the fiscal terms of the Ewoyaa lithium project.
The Australian miner is seeking adjustments to Ghana's mining revenue framework, which mandates a 10% state free carried interest and a special 13% royalty on lithium production revenue.
The negotiations aim to address the impact of falling lithium prices on the project's economic feasibility.
These terms have come under scrutiny as lithium prices have plummeted by more than 80% since their peak in 2022, challenging the viability of new lithium mining ventures globally.
Atlantic Lithium's general manager, Ahmed-Salim Adam, highlighted the urgency of revising the fiscal terms to Reuters, stating that such changes are critical for the project's survival, according to a report by Reuters.
Despite the downturn in the lithium market, Atlantic Lithium aims to advance the Ewoyaa project, working in tandem with the Ghanaian Government and local communities.
Atlantic Lithium executive chairman Neil Herbert said: "We are dedicated to working in a spirit of partnership with the Government of Ghana and our host communities to ensure Ewoyaa becomes a flagship project for the country and the region.
“While current lithium prices present headwinds, we believe that through collaboration and prudent fiscal measures, we can advance Ewoyaa to production and deliver lasting value for all stakeholders."
The Ewoyaa project boasts a strategic location with excellent infrastructure and has demonstrated its capability to produce spodumene concentrate suitable for electric vehicle batteries.
In June 2023, Atlantic Lithium released its definitive feasibility study (DFS) for the Ewoyaa Project, affirming its economic viability with a projected 3.6 million tonnes (mt) of spodumene concentrate production over a 12-year life of mine.
The DFS reflects updated mineral reserves of 25.6mt at 1.22% lithium oxide.
Atlantic Lithium secured a mine operating permit for the project in October last year, the final regulatory step before construction can commence.
