Job losses loom as delay in ratification of Atlantic Lithium deal continues

Over 900 employees of Atlantic Lithium could lose their jobs if the delay in the ratification of the Ewoyaa Lithium agreement continues.

The impending job losses, which could significantly worsen the unemployment rate in the Central Region, were disclosed by Amanda Harsas, the Director of Finance of Atlantic Lithium. She is concerned that the company would be forced to cut down its workforce if Parliament does not expedite the ratification process.

Speaking to the press on the sidelines of the opening day of the 2024 West Africa Mining Security Conference, Amanda Harsas reviewed some measures the company has had to undertake due to the delay in the ratification of the deal.

She lamented that the company has been compelled to cut down its staff significantly due to the delay. With global prices of lithium experiencing a slump, the company could make further adjustments if it does not commence full-scale operations in the coming weeks.

She is concerned that over 900 employees of the company in the Central Region could lose their jobs if there is no resolution to the situation.

She also disclosed that the delay in ratification has affected timelines for major projects that would have led to the socio-economic development of communities in the Central Region.

“We have had the mining lease now for nearly twelve months, but we are still awaiting ratification from Parliament. It’s been disappointing that the ratification has taken this long. Unfortunately, we’ve had to make cuts to our staff because of the delay. This delay is going to affect our timelines, the projects for Ghana, and for the Central Region. Parliament is resuming on October 15, so we are hoping that we will get ratified and get on with the project.

“The delay has affected our timeline. Rather than accelerating and getting into production as quickly as we can, we’ve had to be more careful due to the uncertainty. Our exploration and other activities have slowed down. We’ve had a slowdown, and it will take us a long time to get into production. We’ve constantly reviewed our deadlines with the information we get. With elections coming in December, we hope that the ratification is done when Parliament resumes because if it goes into next year, it will be another delay.

“The price has declined hugely. That kind of price reduction means that a lot of projects globally have either been stopped or stalled. We are urging Parliament to ratify so that we can get into production. We’ve got 900 jobs in the Central Region and many more indirect jobs. The Community Funds and Community Development Funds for the local community. We are ingrained in our community and we want to get this underway,” she said.

In October 2023, a 15-year lease was granted to Atlantic Lithium (A11.AX) to establish the nation’s first lithium mine.

However, almost a year after the deal was announced, Atlantic Lithium has yet to begin operations due to the delay by Parliament in ratifying the agreement.