An official of the Australian exploration company explaining a point to some Ghanaian officials
The recently discovered lithium in the country is set to receive an initial investment boost of $30m as negotiations between the Atlantic Lithium Limited, an Australian exploration and mining firm and the Minerals Incomes Investment Fund (MIIF) continue.
According to a release by the MIIF, commercial deposits of the minerals were discovered by the Australian exploration and mining firm which is listed on the Australian Stock Exchange (ASX).
The Ewoyaa discovery in the Central Region is part of a lithium belt known as the Cape Coast Lithium Belt Mineral Resource Estimate (MRE) of which according to the company last week has been upgraded to 35.3Mt at 1.25 per cent Li2O with an expected revenue exceeding $4.8 billion.
MIIF plans to take up an equity stake in the fully funded African focused company which has a 50 per cent offtake agreement from Piedmont Lithium, a United States based developer of lithium resources for the Ghana produced lithium the release stated.
Piedmont Lithium the release went on also has a 50 per cent offtake agreement with Tesla Inc., an American multinational automotive, artificial intelligence, and clean energy company which owns Tesla Motors.
MIIF CEO, Edward Nana Yaw Koranteng said, “Investing in Atlantic Lithium speaks to President Nana Akufo Addo’s vision of ensuring that mining provides sustainable long term value for Ghanaians. This vision finds meaning in MIIF’s mandate and the plan to invest in the lithium resource and the entire value chain. We are not only interested in developing the mineral resource but to invest in the value chain. Our strategic focus is to support the development of lithium processing, development of battery manufacturing and additional inputs and the preparedness to support an electronic vehicle (EV) market in Ghana to serve the sub-region.”
According to Mr. Koranteng, “Electric vehicles represent a US$7 trillion market opportunity between 2023 and 2030 and US$46 trillion between 2023 and 2050. This represents opportunities for Ghana which can be leveraged by the current automobile development plan that has seen six car assembly plants already established in Ghana.
The by-products of lithium such as feldspar also provide a new stratum of opportunity. Feldspar is the main mineral resource needed to produce ceramics and MIIF is positioned to support the development of the use of the feldspar”.
“MIIF’s strategy is to not only be active in the lithium value chain but to help develop the capital markets. In this vein an initial condition of Atlantic Lithium listing on the Ghana Stock Exchange has been accepted by the company. This will give all Ghanaians the chance to acquire shares in the resource. We are excited that Ghana can play in the green energy boom which is crucial for the decarbonization efforts of the country.” Koranteng said.
Lithium is a critical component in electric cars which are envisaged to replace fossil fuel powered automobiles in a green energy world of tomorrow, an appropriate response to climate change.
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