Koforidua: The Natural Resource Governance Institute (NRGI) has expressed the need for the government to scrutinize the concession request from Atlantic Lithium regarding the Ewoyaa lithium mine. The institute emphasizes that the government should assess Ghana's fiscal regime in the lithium agreement, ensuring value addition, fiscal justice, and responsible mining development.
According to Ghana News Agency, the NRGI raised these concerns during a two-day media engagement in Koforidua, focusing on Ghana's lithium fiscal regime and refinery efforts. The Institute supports informed and inclusive decision-making about natural resources and energy transition. The discovery of commercially viable lithium deposits, particularly at the Ewoyaa project, positions Ghana as a potential player in the global lithium market, which currently sees high demand due to its use in batteries for electric vehicles and renewable energy technologies. This presents a new revenue stream for the country, with potential for both direct and indirect economic benefits.
Mr. Damilare Ogunmowo, Africa Communications Officer at the NRGI, emphasized the role of the media in shaping public discourse and holding decision-makers accountable as Ghana navigates the global race for minerals transition. He stated that by informing the public correctly, citizens can question how the lithium era will benefit them. He further noted that lithium mining could bring additional revenue to the country, which the government could invest in social aspects that directly impact lives, such as job acquisition and social amenities.
Mr. Denis Gyeyir, Ghana Country Manager of the NRGI, highlighted the importance of transitioning responsibly and sustainably by integrating the entire value chain from the mining agreement to tax generation. He explained that any concessions granted must be economically feasible, ensuring neither Atlantic Lithium nor the government faces undue disadvantage. The NRGI has proposed adopting a sliding scale royalty regime, as Atlantic's key request stems from falling lithium prices since the agreement was signed in 2023.
Gyeyir elaborated that sliding scale royalty adjusts based on factors like production volume or price, unlike a fixed rate. With lithium prices dropping from over 1,000 US dollars to about 700 US dollars, Atlantic Lithium seeks to revise some tax proposals to progress with mining. The NRGI suggests that any tax concessions should be based on price performance projections and the long-term costs the company expects to incur.
The organization calls for public disclosure by Atlantic Lithium of the assumptions behind their concession requests. Additionally, NRGI urges the government to mitigate tax avoidance risks, safeguard its interests, and ensure a fair share of benefits in negotiations with the company.
