Atlantic Lithium (ASX: A11) is ready to start building Ghana’s first lithium mine after securing the operating permit for its flagship Ewoyaa project in the West African country.
The licence was the final regulatory approval required by the company to begin construction of the mine and processing plant, and the company says it represents an important milestone towards reaching a final investment decision.
The Australian junior is currently awaiting the ratification of its 15-year mining permit by Ghana’s parliament. Atlantic expects lawmakers to resume sitting on Oct. 15 and it hopes to break ground at the asset, which will also be its first mine, before the end of the year.
“We hope that ratification can occur in the coming sitting, which would set us on the path towards construction and operation of this globally significant lithium project,” executive chairman Neil Herber, said in a statement.
A steep dive in lithium prices over the past two years has put many development projects on hold. But Rio Tinto‘s (NYSE: RIO; LSE: RIO; ASX: RIO) interest in buying Arcadium Lithium (NYSE: ALTM; ASX: LTM), which it confirmed this week, has renewed interest in lithium stocks.
Partner in Piedmont
Atlantic is advancing Ewoyaa under an agreement with Piedmont Lithium (NASDAQ: PLL; ASX: PLL). The miner is expected to fund close to 70% of the US$185-million development costs outlined in a 2023 feasibility study.
Half of the lithium produced at the mine will be sent to a Piedmont refinery. Piedmont is the Australian firm’s second-largest shareholder with a 22.5% stake in its projects in Ghana, including Ewoyaa, and has an option to earn 50%.
Atlantic Lithium aims to produce a total of 3.6 million tonnes of spodumene concentrate, or 350,000 tonnes annually, over 12 years from the site. That would make it the world’s 10th-biggest lithium project, according to the company.
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