The Minerals Income Investment Fund, commonly referred to as MIIF, is set to invest up to US$30million in Atlantic Lithium Ltd., an Australian exploration and mining firm listed on the Australian Stock Exchange (ASX).
Recently, MIIF has been in negotiations with Atlantic, a company which discovered lithium in commercial quantities in Ghana and is on track to become West Africa’s first producing mines to acquire a significant stake.
The Ewoyaa discovery in the Central Region has significant amounts of lithium spodumene located on the Cape Coast lithium belt. The company last week announced an upgrade on its Mineral Resource Estimate (MRE) to 35.3mt at 1.25 percent Li2O for the Ewoyaa project.
With current developments in the Lithium industry, the mineral resource has an indicated life mine of revenues exceeding US$4.8billion.
MIIF aims to take up an equity stake in the African-focused company which has a 50 percent offtake agreement from Piedmont Lithium, a United States-based developer of lithium resources for the Ghana produced lithium.
Piedmont Lithium also has a 50 percent offtake agreement with Tesla Inc., an American multinational automotive, artificial intelligence and clean energy company that owns Tesla Motors.
MIIF Lithium Plan Aims To Achieve Sustainability In Ghana
The Chief Executive Officer of MIIF, Mr. Edward Nana Yaw Koranteng averred that the investment in Atlantic Lithium speaks to President Nana Akufo-Addo’s vision of ensuring that mining provides sustainable long-term value for Ghanaians.
According to the CEO, the president’s vision finds meaning in MIIF’s mandate and the plan to invest in the lithium resource and its entire value chain.
“We are not only interested in developing the mineral resource but also investing in the value chain. Our strategic focus is to support the development of lithium processing, development of battery manufacturing and additional inputs, and ensure the preparedness to support an electronic vehicle (EV) market in Ghana to serve the sub-region.”Mr. Edward Nana Yaw Koranteng
The electric vehicles, as stated by Mr. Koranteng, represent a US$7trillion market opportunity between 2023 and 2030, and US$46trillion between 2023 and 2050.
This, he noted, presents opportunities for Ghana, especially as the country seeks to attract automobile firms to set up vehicle manufacturing and assembling plants. “So far, six car assembly plants have been established,” he added,
“The by-products of lithium, such as feldspar, also 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 feldspar use. MIIF’s strategy is to not only be active in the lithium value chain but also help develop the capital markets.
“In this vein, an initial condition of Atlantic Lithium listing on the Ghana Stock Exchange has been accepted by the company. This will give all Ghanaians a chance to acquire shares in the resource. We are excited that Ghana can play in the green energy boom that is crucial for the country’s decarbonisation efforts.”Mr. Edward Nana Yaw Koranteng
MIIF is a sovereign minerals fund mandated by the Minerals Income Investment Fund Act 2018, (Act 978) as amended, to maximize the value of dividend and royalties’ income accruing to the republic of Ghana in a beneficial, accountable and sustainable manner; and to monetize Ghana’s mineral wealth in a manner that will bring long-term value to the country.