Neil Herbert

ATLANTIC Lithium's Ewoyaa project will be Ghana's first lithium mine when it comes online, around end-2026. There are though a few hurdles yet to overcome for Neil Herbert. One is the ratification of the project's mining permit, granted in October last year. Another piece of unfinished business is funding the balance of the $185m project through Altantic's preferred route of an offtake or prepayment agreement. The preference is for a $75m to $100m prepayment deal over three to five years (about 100,000 tons annually of lithium spodumene). 

The rest of production – Ewoyaa is scoped to produce 365,000t/yr – will be supplied to Piedmont Lithium, a 5% shareholder that has subscribed for 180,000t/yr in return for $70m in project capital. Herbert received assurances in November that a proposed all-share merger between Piedmont and Sayona Lithium would not affect Ewoyaa. 

Meanwhile, the balance of Ewoyaa's production – about 80,000t/yr – is for tender or the spot market. There's also lithium oxide secondary product for which Atlantic Lithium has yet to secure a buyer. As with most lithium hopefuls, Atlantic's share price was under pressure last year amid a price correction for the battery metal. Herbert takes comfort in Ewoyaa's $675/t total cost, which he rates one of the lowest of the world's hardrock lithium mines. 

Asked about the lithium market, Herbert said it was due for consolidation as companies look for economies of scale. He isn't looking for M&A but will consider a good offer. Buyers, though, will have to deal with the canny Assore, a privately held South African mineral investor which owns 27.6% of Atlantic Lithium.