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West Africa

Lithium Mining Companies in Ghana Urge Fiscal Incentives for Mining

June 23, 2025

(3 Minutes Read)

Atlantic Lithium Limited, an Australian-based mining firm, in a press release, said the fiscal concession would ensure the successful development of the Ewoyaa Lithium Project, amid decreasing global prices of lithium.

The Natural Resource Governance Institute (NRGI), an international civil society organisation, is demanding that Bavari DV, a subsidiary of Atlantic Lithium, provide further particulars to back its demand for a fiscal concession.

The demand follows an appeal made by the lithium mining company to the government for fiscal concessions that would affect government earnings in the yet-to-be ratified agreement for Ghana’s first lithium-producing mine.

It is, among other things, requesting the downward revision of the corporate income tax of 35 per cent and the removal of import duties on capital equipment.

He noted that Atlantic Lithium must clarify how it arrived at its new post-tax internal rate of return (IRR) estimate of 13.6% and justify any adjustments it made to its assumptions, down from a previously projected 94 % before debt financing.

In the wake of a declining price of the commodity, he proposed that the government should opt for a sliding scale royalty regime that ensured that the royalty rate for mining concessions was adjusted in proportion to the changes in prices of the commodity on the global market.

He urged the government to avoid granting concessions that applied even when profits were high. According to NRGI, while current lithium prices posed challenges for the Ewoyaa project, industry analysts did not expect the downturn to last. The publication was titled: “Atlantic Lithium’s Request to Ghana for Ewoyaa Fiscal Concessions Requires Scrutiny”.