The Natural Resource Governance Institute (NRGI) has cautioned the government against hastily granting tax concessions to Atlantic Lithium, emphasizing the need for rigorous scrutiny and evidence-based decision-making.
According to Mr. Dennis Gyeyir, NRGI’s Country Manager, any fiscal adjustments must be grounded in verified data, rather than relying solely on company-provided figures.
This call comes as Atlantic Lithium seeks to revise the fiscal terms of its Ewoyaa Lithium Project, citing declining global lithium prices. Mr. Gyeyir warned that blanket tax concessions could result in significant revenue losses for the country, advocating for a flexible tax regime that adjusts in response to global lithium price fluctuations.
NRGI also stressed the importance of transparency regarding the company’s cost assumptions and ensuring that community benefits, including ownership stakes and compensation arrangements, remain intact. “The community share must not be diluted. It is one of the few mechanisms that ensure local people benefit from the project,” Mr. Gyeyir emphasised.
The Institute urged the government to strengthen tax regulations, prevent transfer pricing, and enforce cost controls in any revised agreement. “Any tax relief should not be granted without checks, because the country could end up losing significant revenue,” Gyeyir cautioned.
Atlantic Lithium’s decision to seek revised fiscal terms comes amid declining global lithium prices, prompting the company to engage in talks with Ghanaian authorities to adjust the original terms of the lease granted in October 2023.
The Minister for Lands and Natural Resources, Emmanuel Armah-Kofi Buah, has confirmed that Cabinet has given the green light for negotiations on the lease’s fiscal terms ahead of its final approval in Parliament.
