Ghana’s Minerals Income Investment Fund (MIIF) faces a potential financial loss of approximately GHS 1 million. This comes from its 2.4% stake in Atlantic Lithium due to a proposed $210 million takeover by Chinese company Zhejiang Huayou Cobalt.
MIIF acquired 19.2 million Atlantic Lithium shares for $5 million in 2024. The proposed acquisition terms offer MIIF about $0.25486 per share, which is roughly 1.9% below its original purchase price of $0.2598 per share. This difference translates to a marginal loss of around $95,000, or GHS 1 million.
This situation highlights Ghana's broader efforts to increase domestic participation in its mineral resources. MIIF’s investment, alongside the state’s 13% free carried interest, aimed to move beyond traditional royalties and taxes. The potential loss underscores challenges in directly participating in global mining ventures.
JoyNews Research reached out to MIIF for comment on the proposed transaction. The fund acknowledged the request. However, it had not provided its official position on the acquisition at the time of publication.
If the transaction proceeds under the current terms, MIIF will liquidate its shares. This would result in a domestic currency loss due to the cedi's strengthening against the dollar since 2024. This outcome could impact future MIIF investment strategies in Ghana's mining sector. Observers will watch how MIIF navigates this situation and if any safeguards for Ghana’s interests emerge.
The Chinese battery materials giant Zhejiang Huayou Cobalt announced its plan to acquire Atlantic Lithium on May 7, 2026. Five days later, Huayou agreed to assume the remaining development funding for the Ewoyaa project. The Ewoyaa Lithium Project is located in Ghana and is a significant source of lithium.
MIIF was designated as a key vehicle for Ghana's direct participation when the Ewoyaa mining lease was ratified by Parliament. Schedule 2 of the lease mandates that Atlantic Lithium grants MIIF an equity stake in the project. This provision ensures Ghana has a direct voice in major decisions affecting the project.
The 13% free carried interest held by the Ghanaian state in the project appears protected regardless of the ownership change. However, the proposed acquisition raises questions about MIIF’s future role as an equity participant. The fund's ability to maintain direct representation on the Atlantic Lithium board after the takeover is uncertain. This will be a key aspect to monitor as the deal progresses.