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Plans are in motion for the establishment of Africa’s inaugural lithium refinery in Ghana.
The $500 million project to be located in Takoradi within the Western Region is being spearheaded by a consortium comprising CAA Mining Ltd, Luxembourg-based Livista Energy, and its Ghanaian subsidiary, Livista Ghana Ltd.
The lithium processing facility is a pivotal component of a broader initiative aligned with Ghana’s recently endorsed Green Minerals Policy.
The policy directive mandates the local value addition to lithium resources, rather than exporting them in their raw state.
Douglas D. Chikohora, CEO of CAA Mining Limited, disclosed to the Daily Graphic that, barring any unforeseen setbacks, the refinery is anticipated to be finalized and operational by 2026.
A designated 200-acre plot of land within the Takoradi Port City has been allocated to accommodate this pivotal facility.
Mr. Chikohora noted that initial dialogues have taken place with Ghana Gas Company Limited to facilitate power extension and the establishment of a service pipeline, connecting the refinery to the existing pipeline grid in April of this year.
Upon completion, the refinery will emerge as the third of its kind worldwide, marking a significant milestone as the first of its kind on the African continent.
Licence
Nevertheless, Mr. Chikohora outlined that the commencement of refinery construction is contingent upon the issuance of a prospecting license to Lithium Resources Ghana Ltd (LRGL), a collaborative venture involving CAA Mining Ltd and local entity Empire Rare Earth and Metal Group Limited.
LRGL has already committed $2 million to lithium exploration within a 646-square kilometer concession spanning the lithium-rich corridor along Awutu-Bereku and Mankessim in the Central Region.
In addition, they have pledged a $10 million lithium drilling program, subject to the Minerals Commission’s approval of a prospecting license.
Mr. Chikohora explained, “Once we obtain the prospecting license and commence drilling, the quantity of lithium extracted will determine the scale of the refinery we establish.”
He emphasized the consortium’s commitment to aligning with Ghana’s green minerals policy and investing in the lithium value chain.
Strategic Location
The chosen location for the refinery in Ghana holds strategic significance, as it is poised to tap into lithium resources not only from Ghana but also from other African nations such as the DR Congo, Sierra Leone, Zimbabwe, Mali, Namibia, and South Africa.
“In the entire world, there are only two locations where lithium is refined, namely China and the US. In Africa, there is currently no lithium refinery. Thus, by establishing the refinery in Ghana, it will become the third globally and the first in Africa. Consequently, this Ghana-based refinery will possess a pan-African dimension, processing lithium sourced from various parts of the continent,” Mr. Chikohora explained.
He further predicted a surge in industrial activity within Ghana once the refinery is operational, with the emergence of battery manufacturers and vehicle assembly plants.
Apart from job opportunities in mining and refining, the production of refined lithium locally is expected to stimulate the growth of battery manufacturing firms, vehicle assembly plants, and other related industries.
Local Content
Regarding local content, Mr. Chikohora emphasized that LRGL represents a collaboration between a foreign and a local entity, adhering to an indigenous business model spanning the entire value chain.
Discussions are also underway with the Mining Income Investment Fund (MIIF) to include them as shareholders in the lithium value chain, enhancing local content participation.
“We have signed a market development agreement with MIIF, so they are fully aware of our activities,” he noted.
Mr. Chikohora concluded by revealing that the consortium plans to launch its social responsibility program later this year, outlining the areas of support that will be extended to host communities.
The company has maintained ongoing communication with these communities to prioritize areas for corporate social responsibility activities.
“We anticipate launching the social responsibility program by the end of September, contingent upon the status of the license,” he added.
Source: theheritagetimes.com
