MIIF looks to invest $30m in lithium exploration
Ghana’s Minerals Income Investment Fund (MIIF) has announced that it is in negotiations to invest up to $30 million in Atlantic Lithium Ltd, an Australian mining firm listed on the Australian Stock Exchange (ASX).
Atlantic Lithium has discovered lithium in commercial quantities in Ghana and is on track to become West Africa’s first producing mine. The company recently announced an upgrade on their Mineral Resource Estimate to 35.3Mt at 1.25% Li2O for the Ewoyaa Project, with an indicated mine life of revenues exceeding $4.8 billion.
MIIF plans to take up an equity stake in the fully-funded African-focused company, which has a 50% offtake agreement from Piedmont Lithium, a United States-based developer of lithium resources.
The CEO of MIIF, Edward Nana Yaw Koranteng, said that the investment in Atlantic Lithium is in line with President Nana Akufo Addo’s vision of ensuring that mining provides sustainable long-term value for Ghanaians.
The plan is not only to develop the mineral resource but to invest in the entire value chain. MIIF’s strategic focus is to support the development of lithium processing, battery manufacturing, and additional inputs, as well as the preparedness to support an electric vehicle (EV) market in Ghana to serve the sub-region.
Mr. Koranteng highlighted that electric vehicles represent a US$7 trillion market opportunity between 2023 and 2030 and US$46 trillion between 2023 and 2050. MIIF intends to not only be active in the lithium value chain but to help develop the capital markets.
An initial condition of Atlantic Lithium listing on the Ghana Stock Exchange has been accepted by the company, giving all Ghanaians the chance to acquire shares in the resource.
MIIF’s CEO, Edward Nana Yaw Koranteng, aims to build Africa’s largest Sovereign Minerals Fund with more than $1 billion in Assets Under Management (AUM) by 2030. He also mentioned that the by-products of lithium, such as feldspar, provide a new stratum of opportunity.
Feldspar is the main mineral resource needed to produce ceramics, and MIIF is positioned to support the development of the use of the feldspar.
In summary, MIIF’s investment in Atlantic Lithium is a strategic move to tap into the green energy boom and support Ghana’s decarbonization efforts. The investment is aligned with the country’s vision of sustainable long-term value from its mining sector and also presents an opportunity to develop the capital markets.
The lithium value chain also offers opportunities to support the development of battery manufacturing, the electric vehicle market, and the production of ceramics. The investment in Atlantic Lithium will give Ghanaians the chance to acquire shares in the resource, further contributing to the development of the country.
