Atlantic Lithium Ltd (AIM:ALL, OTCQX:ALLIF, ASX:A11) executive chairman Neil Herbert explained to Proactive the importance of a mine operating permit for its Ewoyaa Lithium Project in Ghana.
Neil Herbert: This is part of our ongoing efforts to complete the permitting on the project.
Last month, we completed the environmental permitting, which was a very important step.
We now have the mine operating permit, one of the most important permits we require.
We're looking forward to receiving a ratification of the mining lease, which is a parliamentary process.
We actually received the mining lease last October, so we should have that later this month or early next month.
Proactive: What are the next steps then as you move towards construction of the project?
Neil Herbert: The key focus for us is completing the permitting.
Once that's done, we can set a date for breaking ground on the project and begin construction next year.
The timeline for the project is about two years from the start of construction to production, so we expect to be in production by the end of 2026, with full production achieved in 2027.
Proactive: Ewoyaa would be Ghana's first lithium mine, is that right?
Neil Herbert: Correct. Ghana has a very well-established mining sector and strong infrastructure.
Most of the personnel in the mining sector are Ghanaians due to the experience and education available in-country.
However, there are no lithium mines in Ghana at this time. Ewoyaa will be the first, and it’s set to be a significant one—it will be one of the largest hard rock lithium mines globally.
It also has a very favourable cost profile, both in terms of CapEx and OpEx.
So, even in poor lithium markets, this project is expected to perform well.
Proactive: You mentioned poor lithium markets. Lithium prices have been under pressure, and there's a lot of M&A activity going on. How do you see the dynamics?
Neil Herbert: The sector is ripe for consolidation. There are many relatively small companies that have emerged over the last decade to meet rising demand, and we're now seeing consolidation in the sector.
I expect to see much more of it over the next few years, as companies look to achieve economies of scale.
Proactive: We had the Rio Tinto deal announced earlier this week. Is this the start of something bigger?
Neil Herbert: Indeed, everyone is talking about M&A in the sector. People have approached us about M&A, but we're focused on taking this project into production.
Of course, if an M&A opportunity arises, we would consider it, but our priority is advancing the Ewoyaa project.