Affected by the sharp decline in global lithium prices, the Ghanaian government has announced that it will review the terms of the cooperation agreement for the Ewoyaa lithium mine project, as the project's economic feasibility is facing severe challenges.
Emmanuel Amani Kofi Buah, Minister of Lands and Natural Resources, disclosed in Parliament on Wednesday that the lithium ore prices had plummeted from a historical high of $3,000/mt, severely shaking the foundation of the project's development. The latest market price is hovering around $700/mt, which is on par with the estimated concentrate production cost in the feasibility report.
The Minister pointed out that this price storm has forced major lithium companies worldwide to cut production and lay off staff, as well as shelve new projects, and the Ewoyaa lithium mine in Ghana has not been spared.
In response, Baari DV Ghana, the project operator, has officially applied to amend the lease terms to avoid the project's collapse. The company secured a 15-year mining lease for 42.63 square kilometers in the Mankesim area of the Central Region in October 2023.
Although the lease documents were submitted to Parliament and reviewed by the Special Committee on Lands and Natural Resources in 2024, the approval process was stalled due to the recess caused by the 2024 general elections. Faced with a continuously deteriorating market environment, the government has received the company's appeal and is preparing to submit a revised proposal to the Cabinet.
Minister Buah emphasized that the Ministry has already informed the Cabinet and is about to submit a new memorandum outlining specific adjustment proposals. This revision aims to pave a sustainable path for the project and safeguard Ghana's strategic interests in the rapidly evolving battery metals industry.
