Ghana Misses Strategic Stake in Atlantic Lithium Sale

Zhejiang Huayou Cobalt Co. Ltd., a Chinese lithium battery materials giant, is in the final stages of acquiring Australia's Atlantic Lithium Ltd. for $210 million. This all-cash deal secures control of Atlantic Lithium’s assets in Ghana, including the significant Ewoyaa Project.

Under the proposed agreement, the final purchase price for Atlantic Lithium will account for capital gains taxes paid to the Ghana Revenue Authority. This acquisition is more than a simple mining transaction; it highlights the global competition for critical minerals essential for the 21st-century economy. For Ghana, particularly the Minerals Income Investment Fund (MIIF), this development signals a missed strategic opportunity for meaningful national participation in the emerging mineral value chain.

The Atlantic Lithium Ewoyaa Project is recognized as one of Africa's most commercially attractive hard-rock lithium projects. Major global powers are competing to secure critical mineral supplies. The strategic value of such an asset extends beyond immediate mining revenues. The project was intended to position Ghana as a significant player in the global battery minerals market. This aligns with broader visions for strengthening Ghana’s automobile industry and supporting electric vehicle adoption.

The BFTOnline reports that Edward Nana Yaw Koranteng, former MIIF CEO, and Martin Ayisi, former Minerals Commission CEO, previously led negotiations for the Ewoyaa Project. Steven Manteaw and other observers described the outcome as one of Ghana's best mining agreements. In 2023, Edward Nana Yaw Koranteng stated the project was crucial for Ghana’s industrial and security interests.

The Minerals Income Investment Fund (MIIF) was established to ensure Ghana gains long-term value from its mineral resources. MIIF aimed to serve as a sovereign strategic investment vehicle. Earlier negotiations had secured an increase in Ghana’s free-carried interest from 10% to 13%. Royalties were set to increase from 5% to a 10% sliding scale formula.

MIIF had also secured a 3.06% global stake in Atlantic Lithium for approximately $5 million. This stake was purchased at a discounted share price of GHS 0.25 per share. Its intrinsic value was approximately $24.4 million at the time, with additional warrant options priced at GHS 0.34. Atlantic Lithium was also mandated to list 19% of its holdings on the Ghana Stock Exchange, which would have deepened capital markets.

For Ghana’s seven tenements, including the Ewoyaa Project, MIIF negotiated an additional 6% stake valued at $27.9 million. This would have increased direct Ghanaian participation to approximately 23%. However, the closure and disbursement for this local investment did not occur due to delayed parliamentary ratification of the Ewoyaa Lease. The negotiations also included plans for a processing plant and development of feldspar, a lithium byproduct. MIIF reportedly negotiated a right to purchase up to 40% of the spodumene output for local processing. Control over lithium assets offers geopolitical leverage and economic influence, explaining global competition.