The Natural Resource Governance Institute (NRGI) is urging the government of Ghana to pursue the path of greater public scrutiny in the interest of its citizens as Atlantic Lithium requests unexplained fiscal concessions for the Ewoyaa lithium project located in the Nfanteman Municipality of the central region.
The Australia-based mining firm made the appeal for fiscal relief to rescue the Ewoyaa roject, cautioning that collapsing global lithium prices have rendered the venture economically unviable.
The fiscal concessions being sought include a reduction in royalty rates from 10% to 5% in line with what is charged in Ghana’s gold sector or the adoption of a flexible sliding scale linked to global lithium prices.
The company also proposed a review of the 32.5% corporate income tax rate and the removal of import duties on capital goods.
However, NRGI urged the need for Ghana to seek further clarity on the request made by Atlantic lithium.
Addressing Journalists at a two-day engagement on the Ewoyaa lithium fiscal regime and proposed establishment of a refinery, Thomas Scurfield, the Senior Economic Analyst for Africa at NRGI raised some critical issues sorrounding Atlantic Lithium’s request that needs further clarification.
NRGI questioned the adequacy of public information supporting Atlantic’s request and urged the government of Ghana to demand more clarity.
“The company has cited falling lithium prices as justification, but they’ve provided little detail on how this affects the project’s viability. Our modeling using current lithium prices still shows an internal rate of return around 25% far above the 13.6% Atlantic claims,” Mr Scurfield noted.
The descrepancy he noted suggests he company may have triggered other underlying assumption including production costs or timelines without disclosing them to Ghana, urging greater transparency on the part of Atlantic Lithium whiles encouraging the country to ensure vigilance.
NRGI proposed a three-step framework to effectively evaluate the concessions being sought by the company.
Avoid permanent concessions due to price volatility
It cautioned against granting permanent tax concessions as that could cost the country significantly when lithium prices recover stating that “Lithium is a highly volatile commodity. If government agrees to permanent royalty or tax cuts, Ghana may lose out when the mine becomes highly profitable in the future,”
The Senior Economic Analyst urge Ghana to consider a sliding scale royalty that adjusts with price fluctuations to provide flexibility without locking the country into long-term revenue losses.
Demand Fair Trade-Offs
If the government determines that some form of concession is necessary to make the project viable, Scurfield emphasized that it should negotiate reciprocal benefits. These could include stronger anti-tax avoidance provisions, price benchmarking, and interest deduction limits to prevent profit shifting.
“This should not be a one-sided deal. If the company needs support now, they must give something in return whether through stronger tax compliance mechanisms or progressive tax structures that ensure higher payments when profits rise,” he stressed.
Public Interest and Parliamentary Oversight
NRGI urged the government and parliament of Ghana to be resolute in ots approach to ensure the best deal for the country.
“It’s not ideal that the company is asking for concessions at this stage, but if necessary, government must negotiate responsibly ensuring Ghana does not give away its mineral wealth without adequate returns.”
The proposal by NRGI comes at a critical time, as Ghana positions itself to become a key player in Africa’s green minerals value chain. The call for transparency aligns with broader demands from civil society for inclusive governance in the country’s emerging lithium sector.
