Ghana: Lithium production in limbo after stalled negotiations

Ghana’s current mining laws give at least 6% of the total revenue of minerals obtained by mining companies to the government in royalties. The current administration, however, is proposing 10%, which has irked investors at Australian company Atlantic Lithium Ltd, which may result in unwarranted delays in production.

In addition, the government has proposed that it will pay $21.5m for a 6.5% equity interest in Atlantic Lithium’s local subsidiary, Barari Development Ghana Ltd, translating to a valuation of $331m of the local asset.