Parliament has received a revised mining lease from the Africa-focused lithium exploration and development company, Atlantic Lithium Limited, for its flagship Ewoyaa Lithium Project.

The revised mining lease was drafted following consultations led by the Minister of Lands and Natural Resources with relevant stakeholders.

In the coming days, the Parliamentary Select Committee is expected to examine the lease in detail and make recommendations after its review. Ghana is increasingly viewing lithium as a strategic asset due to its importance in electric vehicles and renewable energy storage technologies.

In April, Atlantic Lithium Limited expressed confidence in moving forward with the development of Ghana’s first lithium mine, despite a dramatic fall in global lithium prices that has threatened the project’s economic viability.

The company’s Executive Chairman, Neil Herbert, insisted that with the right collaboration and supportive fiscal terms, the Ewoyaa Lithium Project located near Mankessim in Ghana’s Central Region can still be delivered successfully.

“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,” he added.

Atlantic Lithium’s optimism followed engagements with the Ghanaian government to request fiscal concessions necessary to sustain the project in light of tumbling lithium prices. Since the grant of the 15-year mining lease in October 2023, the price of lithium critical in electric vehicle (EV) battery production has plunged by more than 80 per cent from its peak in late 2022.

The company, which has invested nearly US$70 million since 2016, is counting on discussions with government officials and key stakeholders to yield a revised fiscal framework aligned with current market conditions.

Despite the global downturn in lithium prices, Atlantic Lithium says it remains committed to advancing the Ewoyaa project to production and ensuring it delivers broad-based benefits to Ghana, including job creation, skills transfer, and revenue generation.

The project was expected to position Ghana among the top 10 producers of spodumene concentrate a key lithium-bearing mineral with an annual output projected at 360,000 tonnes, mainly for export to the United States.

However, in addition to falling commodity prices, delays in parliamentary ratification of the lease have slowed progress toward the construction phase, which had initially been scheduled to begin by the end of 2024.

In a formal statement, the company reaffirmed its commitment to working closely with both the government and local communities to deliver a long-term, sustainable mining operation.

“Atlantic Lithium remains steadfast in its commitment to progressing the Ewoyaa project to production, working closely with the Government of Ghana and local communities,” the statement read.

“The Company continues to engage in constructive discussions with all stakeholders to ensure that the project delivers long-term benefits for Ghana, including critical revenues, local employment and skills development.”

Meanwhile, the Minister for Lands and Natural Resources, Emmanuel Armah-Kofi Buah, has laid before Parliament the Minerals and Mining Royalty Regulations, 2025, a new Legislative Instrument (L.I.) intended to adjust mining royalties.

The proposed regulations establish a sliding-scale royalty framework, allowing royalty rates to adjust automatically in response to fluctuations in global commodity prices. The system aims to ensure the state derives maximum benefit during periods of high prices while offering relief to investors when prices fall.

“Today, I'm proud to say that I have brought a regulation that gives us a sliding scale agreement. The advantage is that it allows the state to capture the benefit in good times, like in the gold sector, and I have to tell you we've done it across the mineral sector,” Mr Buah told journalists in Parliament last week.

He explained that when Ghana initially struck its lithium deal, global lithium prices were around $3,000, which led to a 10 per cent royalty rate. With the new sliding-scale system, any price above that level would earn the government a higher share.

“But today, with the sliding scale I've brought, even when we get to $2,500, which achieved 10%, when we get to $3,000, because of the sliding scale, $3,000 plus will go to 12%. In fact, if you do the calculation at that point, it means that $3,000, government is saving almost over $500 million,” he noted.

According to the Minister, the proposed Minerals and Mining Royalties Regulations, 2025, will also safeguard mining companies during downturns, as royalty rates will automatically adjust downward when prices decline.

Mr Buah stressed that the regulations provide predictability for investors, reducing uncertainty around fiscal terms.

“What is important for investors? It gives them certainty. They are very sure that in Ghana, when the price tumbles, we will not be in trouble because the government automatically will reduce royalties. When prices go up, the government will also take advantage and capture the benefit,” he explained.

The new regulations go beyond royalties by establishing a one per cent Community Development Fund to support infrastructure projects in the Mfantseman Municipality. The Minister noted that previous agreements did not include such provisions.

“I'm very happy today that we've strengthened it. We've even had provision in the lithium agreement that I've laid today. Infrastructure provisions was not in the 2023 agreement. It is in now,” he added.

The Legislative Instrument (L.I.) covers all mining agreements and aims to improve transparency, protect investor interests, and boost government earnings from Ghana’s mineral resources, subject to parliamentary approval.

On the other hand, Kwaku Ampratwum-Sarpong, the Ranking Member of the Lands and Natural Resources Committee, contends that the agreement works against the public interest and diminishes trust in Ghana’s resource management system.

In the same vein, an Act of Parliament (Act 1140) in 2025 established the Ghana Gold Board (GoldBod) to oversee, regulate, and undertake the buying, selling, assaying, refining, exporting, and related activities involving gold and other precious minerals in Ghana.

Under Section 78 of Act 1140, the GoldBod assumed the rights, obligations, assets, liabilities, and workforce of the Precious Minerals Marketing Company (PMMC) Limited, an offshoot of the Ghana Diamond Marketing Board.

The Ghana Diamond Marketing Board was established in 1963 and charged with purchasing and marketing Ghana’s diamonds. In 1965, through Legislative Instrument (LI) 401, it was incorporated as a state-owned enterprise.

Following the promulgation of the Diamonds Decree (NRCD 32) in 1972, LI 916 was enacted to change the company’s name to the Diamond Marketing Corporation. In 1989, PNDC Law 219 again changed the name to the Precious Minerals Marketing Corporation, with expanded functions to grade, assay, and value gold, diamonds, and other precious minerals.

In 2000, the Corporation was converted into a limited liability company under the Statutory Corporations (Conversion to Companies) Act (Act 461) and renamed Precious Minerals Marketing Company (PMMC) Limited, retaining its functions. In 2016, PMMC was appointed the national assayer by the Government of Ghana.

To strengthen industry regulation and optimise national benefits, the Ghana Gold Board was established on April 2, 2025, following extensive stakeholder consultations. The initiative aims to maximise foreign exchange inflows, gold reserve accumulation, and value addition for sustainable economic growth and transformation.