Piedmont Lithium (ASX:NASDAQ:PLL, OTC:PLLTL) Inc partner Atlantic Lithium Ltd (AIM:ALL, OTCQX:ALLIF, ASX:A11) continues to make significant progress to begin mining the Ewoyaa Lithium Project in Ghana, West Africa, including obtaining bulk customer classification from the Energy Commission which will reduce overall electricity cost by 30%-50%.
The permit, which is valid for one year and renewable before its expiration, will allow the company to enter into a competitive bid process with various bulk energy suppliers in the country.
The partners are targeting the commencement of construction in late 2024 and initial production in early 2025.
Firm path to production
“Following the grant of the mining lease in October 2023, we are now firmly on the path towards building Ewoyaa as Ghana’s first lithium mine,” Atlantic Lithium chief executive officer Keith Muller said.
“Alongside our ongoing recently extended exploration programs, which continue to add value to the project, excellent progress is being made towards achieving shovel readiness.”
Among the progress made, the permitting phase is well underway, with the company having had active engagement with local stakeholders within and surrounding Ewoyaa’s lease area, including holding an inaugural community consultative committee meeting in October to discuss how the project can benefit the local population.
“Ever since the company began operating in Ghana, the local population has shown incredible backing for the project and this continues even as we near construction,” Muller added.
Other key contracts progressing rapidly include:
- Advanced discussions for the award of the engineering, procurement, construction and management (EPCM) contract for the main processing plant and all non-processing infrastructure;
- Tender stage underway to appoint a mining contractor and for the procurement of the modular dense media separation (DMS) unit, respectively;
- Tender stage to commence imminently for the procurement of the mobile crusher to feed the modular DMS unit; and
- Award of contract in the second quarter of next year to divert transmission lines crossing the project site.
Flotation study
A flotation scoping study has been completed and confirms the case for the inclusion of a flotation circuit, which will operate independently and downstream from the main DMS plant.
Naturally occurring fines, currently intended to be sold as a low-grade lithium secondary product, will be processed through the flotation circuit into higher-value concentrate products.
These products will reduce the company’s exposure to the low-grade lithium-bearing products market in the event the market is adversely affected in the near-to-medium term.
The construction and integration of the circuit will be carried out after the main processing plant has achieved a steady state of 2.7 million tonnes annualised throughput.
Feldspar study
The definitive feasibility study to assess the viability of producing feldspar as a by-product of spodumene concentrate production to be supplied to the local Ghanaian ceramics market is continuing.
This study, undertaken in conjunction with the University of Mines and Technology, has now completed sodium analysis of drilling samples stored at the project site.
The sodium analysis, along with X-ray diffraction analysis of a selection of whole rock pegmatite samples, will feed into a maiden mineral resource estimate for feldspar production.
The maiden MRE, which will prioritise the first five years of the project’s mine schedule, is expected to be published this quarter.
Atlantic Lithium believes Ewoyaa could be a major domestic source of feldspar and generate significant value to the project and the local communities within the central region and to Ghana more broadly, including job creation in the ceramics sector as well as businesses and services related to the industry.
Key appointments
A number of strategic hires were made recently to bolster the experience and expertise of the leadership team.
Ahmed-Salim Adam joins as general manager of Operations, Andrew Henry as general manager for Commercial and Finance, and Simone Horsfall as general manager of People.
An accomplished mining general manager with more than 15 years of experience across all stages of mine development, production and closure in Ghana, Adam has a thorough understanding of technical, financial and regulatory complexities within the mining sector, as well as strong leadership qualities.
Meanwhile, Henry brings significant commercial and finance management experience, including within the mining sector, where he has honed his expertise on strategy, planning and analysis, contracts, and large-scale project development.
He was most recently the commercial manager at global lithium chemicals company Allkem and prior to that, at major gold mining company Newcrest Mining, where he spent more than four years.
A senior human resources professional with a focus on the mining sector, Horsfall spent more than a decade at AngloGold Ashanti as Human Resources manager and, more recently, at 29Metals as group manager of Human Resources.
Her appointment will support the company’s transition towards becoming a globally significant lithium producer.