-Advertisement-

-Advertisement-

Ghana strikes lithium

Ghana has struck commercial quantities of lithium, and the Minerals Income Investment Fund (MIIF) is eyeing an investment in the sector.

The mineral has been discovered in the Western Belt and from Mankessim through Cape Coast to Sekondi, according to a source at MIIF.

The most important use of lithium is in rechargeable batteries for mobile phones, laptops, digital cameras, and electric vehicles.

It is also used in some non-rechargeable batteries for things like heart pacemakers, toys, and clocks.

MIIF Chief Executive Officer, Edward Nana Yaw Koranteng, who said this during an interaction with investors and delegates on the sidelines of the Mining Indaba recently in Cape Town, South Africa, said this is part of the agency’s 2022 investment plans.

He told the biggest mining investment event in Africa that Ghana has proven commercial deposits in lithium, which is the basic resource needed to power the burgeoning electrical vehicles (EV) market.

“The data is exceptional with additional opportunities from the value chain and for byproducts such as feldspar, the main resource in ceramics and fiberglass,” Mr. Koranteng said.

According to Mr. Koranteng, the global market for unprocessed lithium is around $6.83 billion, with analysts projecting steady growth to circa $10 billion by 2028, and with the global lithium battery market projected to hit $100 billion by 2025 due to the rapid expansion in the EV market.

“We clearly see lithium as a growth pole, after analyzing all the data and have started deliberations with Atlantic Lithium which holds concessions with a recoverable grade of 560 km2 miles in Ghana,” Edward Nana Yaw Koranteng told the investors gathered in Cape Town.

Mr. Koranteng stressed that “a direct equity investment provides a good opportunity for MIIF to come in at an early stage considering Atlantic’s planned listing in August 2022. We are looking at an Internal Rate of Return of 125% in four years and  projected revenue of more than $1.5 billion over eight years,” the MIIF CEO said.

The Strategic Thrust Of MIIF

The strategic intent of MIIF is to derive long-term value for the citizens of Ghana by investing and holding equity positions across the entire value chain of all minerals in the country.

MIIF recently acquired over 4.65%, being over 14 million shares in Asante Gold Corporation, which has substantive gold assets in Ghana and is traded on the Canadian and Frankfurt stock exchanges.

The fund is also seeking to support the formalization of the small-scale gold mining sector through a program dubbed the Small-Scale Mining Incubation Programme (SSMIP).

This program is being done with the support of the Ministry of Lands and Natural Resources and the Minerals Commission.

You might also like
Leave A Reply

Your email address will not be published.