Atlantic Lithium Limited has announced significant job cuts in response to delays in the ratification of its Ewoyaa Mining Lease and falling lithium prices.
The company stated that these reductions are essential for reallocating resources to critical activities aimed at advancing Ghana’s first lithium mine.
The announcement was made during the company’s 2024 Annual General Meeting. CEO Keith Muller explained that the delay in the ratification of the Mining Lease, which is the final regulatory step before breaking ground, has been exacerbated by political disruptions linked to the upcoming elections in Ghana.
These delays, combined with a sluggish lithium pricing environment, led to the difficult decision to reduce the workforce.
Despite the setbacks, Atlantic Lithium has achieved key milestones, including obtaining environmental permits and making progress on feasibility studies.
Muller expressed the company’s commitment to securing favorable terms in ongoing funding discussions, highlighting the continued support from partners such as the Minerals Income Investment Fund.
While the company faces challenges, it remains optimistic about the long-term demand for lithium and expects a clearer regulatory landscape once the elections are over.
“Knock-on effects have also been felt across our funding activities. Despite reaching the final stages of our competitive offtake partnering process, we remain steadfast on the preferred terms that we had defined going into the process and, despite lower current prices, we refuse to settle on terms that we believe compromise the best interests of the Company’s shareholders.”
“We continue to receive considerable demand for product from Ewoyaa from potential offtakers and, as such, remain confident in securing the funding that Atlantic Lithium requires to sufficiently cover its allocation of development expenditure for the Project,” Keith Muller added.
The company continues work on refining technical studies and securing contracts to move toward its Final Investment Decision (FID).
