In October 2023, when the Government of Ghana signed the country’s first lithium mining lease with Barari DV Ghana Ltd, it marked a historic moment that was greeted with widespread excitement and public interest.

The communities and youth of Mankessim, Abura, and particularly Ewoyaa, were jubilant about the economic prospects and job opportunities that the project promises.

The Feasibility Study on the company website promised to deliver substantial local benefits, with planned construction of the mine expected to start in October 2024 after parliamentary ratification in July 2024.

However, with the Government’s failure to deliver on its promise of ratification resulting in delay in the project, stakeholders are unclear about the projects current status and timelines.

This prolonged delay in ratifying the Atlantic Lithium mining lease risks eroding investor confidence in the country’s extractive sector, experts have warned.

Dr Frank Boateng, Acting Director for Institute of Mineral Resource Investment and Governance (IMRIG) at the University of Mines and Technology (UMaT), says the two-year stalemate surrounding the Ewoyaa Lithium Project threatens to undo Ghana’s hard-earned reputation as a credible mining investment destination.

In an interview with ghextractives.com, Dr. Boateng noted that Ghana has long been recognized internationally as a welcoming and credible destination for mining investment — a reputation now under threat.

“People know Ghana as a home for minerals and as a country open to foreign direct investment,” he said. “Investors have always had cordial relationships with government and state institutions. This has built our credibility as a country and made us an important destination for foreign investment, especially in the extractive sector. But situations like this make it very difficult — it is not a good sign at all.”

A Two-Year Wait and Growing Investor Anxiety

What does this rather long delay in granting the final approval of the mining lease to Atlantic Lithium mean for Ghana’s quest to be enter the global electric vehicle (EV) and clean energy value chain?

Is there any hope of this current government getting Parliament to do it job during the next sitting slated to start October 21, 2025? Or will the uncertainty deepen and further make Ghana loose the economic opportunities associated with the project?

Dr Boateng said the delay could have far-reaching consequences for both investor perception and economic opportunities.

“Investors who are willing to come in to create jobs and stimulate economic activity may begin to question our seriousness,” he warned. “Every delay chips away at confidence, and that’s not good for the country or the extractive sector.”

Uncertainty and the Cost of Delay

Mining consultant Ing. Wisdom Edem Gomashie shared similar concerns, describing the prolonged delay as “legally and economically risky.”

He explained that Ghana’s mining laws clearly require parliamentary ratification before leases take effect, and failure to comply creates uncertainty for investors who have already committed funds based on the lease terms.

Ing. Gomashie cautioned that the delay has immediate economic consequences. If the lease had been ratified last year, he said, the project would already be in its development stage — generating employment, contracting local services, and injecting capital into the local economy.

“Mine development means spending — from site preparation to infrastructure setup. That money circulates in the local economy through taxes, wages, and purchases,” he noted. “Now, because of the delay, those benefits are frozen.”

Atlantic Lithium, he added, has projected employing about 900 workers when full production commences at its Ewoyaa Project in the Central Region — a significant boost for local jobs and livelihoods now on hold.

Impact on Communities and State Revenue

Communities near the project site have also been affected, with some locals who had gained temporary employment now asked to stay home until further notice.

“The young people in the Ewoyaa area were full of anticipation,” Ing. Gomashie said. “Some had already been engaged by the company, but because the project hasn’t been approved, they’ve been told to go home. So there’s a real loss of livelihoods and community gains.”

The mining consultant emphasized that every day of delay adds to the project’s cost — both for the company and for the state.

“Every second, every day the project stalls, the cost rises,” he said. “If lithium prices keep fluctuating, the project could eventually become unprofitable, which would be disastrous for both Ghana and the investor.”

State Investment Also at Risk

The Minerals Income Investment Fund (MIIF) has already invested in the Project via a share subscription of 3% in Atlantic Lithium. The Mining lease requires the company to grant MIIF further investment with another acquisition of 6% earmarked for 2024 delayed.

But according to Ing. Gomashie, recent fiscal measures, including the transfer of about 80% of MIIF’s funds to the Consolidated Fund could jeopardise its ability to meet financial commitments to the project.

“If MIIF’s capital is capped or redirected, it could affect the state’s participation in Atlantic Lithium,” he explained. “That’s public money locked up, and if the project doesn’t move, those investments remain idle.”.

How does the government juxtapose this policy shift with the loud public cry for higher state investment in mining projects in the early phase of development?

He warned that prolonged inaction could even expose Ghana to legal and financial risks if the investor decides to pursue compensation for delays caused by government inaction.

The Bigger Picture — A Test of Credibility

Under the negotiated terms, Ghana stands to gain significantly from the Ewoyaa Project, including royalties, equity, and local listing requirements, all designed to deepen Ghanaian participation in the lithium value chain.

Yet, without parliamentary ratification, these benefits remain a pipe dream.

“We must not allow political cycles to distort investor confidence,” Dr. Boateng cautioned. “The world is watching. Countries like Mali, Namibia and Zimbabwe are moving faster with lithium development. Ghana cannot afford to fall behind.” Both experts agree that the Ewoyaa Project represents a test of Ghana’s governance maturity in handling strategic mineral resources.

“Government must right whatever wrongs it perceives, but above all, it must move. Every month of delay means lost opportunities — jobs, growth, and the trust of the global investment community,” Dr Boateng said.

“No matter how we look at it, this is currently Ghana’s best mining deal. Delaying it any further doesn’t make it better — it only makes it costlier,” Ing. Gomashie concluded.

Until Parliament acts, the future of Ghana’s lithium ambitions and its credibility with global investors remains uncertain.