Analysis: Chinese takeover of Atlantic Lithium could force MIIF to exit at a loss

On May 7, 2026, Chinese battery materials giant Zhejiang Huayou Cobalt announced plans to acquire Atlantic Lithium in a proposed $210 million transaction that could significantly reshape the future of Ghana’s Ewoyaa Lithium Project.

Five days later, Huayou agreed to assume the remaining development funding obligations for the Ewoyaa project while continuing its pursuit of Atlantic Lithium.

Beyond the implications for the mine itself, the proposed transaction could have some consequences for the Minerals Income Investment Fund (MIIF), Ghana’s sovereign minerals investment fund.

When the Ewoyaa mining lease was negotiated and later ratified by Parliament, MIIF was identified as one of the key vehicles through which Ghana would participate directly in the project.

Schedule 2 of the lease provides that:

“The Company shall grant the Minerals Income Investment Fund (MIIF) equity stake in the mining project in accordance with the terms and conditions as shall be agreed with the Company.”

MIIF, which receives a portion of Ghana’s mineral royalties for investment purposes, subsequently subscribed for approximately 19.2 million Atlantic Lithium shares for $5 million in 2024.

The investment gave MIIF a 2.4% stake in Atlantic Lithium and a seat on the company’s board, providing Ghana with direct representation within the company as major decisions affecting the project were being considered.

Together with the state’s 13% free carried interest, MIIF’s investment formed part of a broader effort to increase Ghanaian participation in the project beyond the traditional collection of royalties and taxes.

The proposed Huayou takeover now raises questions about the future of that arrangement.

Based on the proposed acquisition terms, MIIF would receive about $0.25486 per share.

According to Atlantic Lithium’s disclosures, the fund acquired its 19.25 million shares at approximately $0.2598 per share in 2024.

This implies a potential loss of approximately $95,000 (₵1 million) if the transaction proceeds on the announced terms.

The picture becomes even less favourable when exchange rate movements are taken into account.

The cedi has strengthened against major currencies since MIIF made the investment, meaning the proceeds received from the sale could translate into fewer cedis than the amount originally invested.

Whether MIIF supports the transaction, and what safeguards it may have sought for Ghana’s interests, remains unclear.

While Ghana’s 13% free carried interest appears protected under the current ownership structure, the proposed acquisition raises broader questions about whether MIIF’s role as a direct equity participant in the project will continue in any form after the transaction is completed.

A request for comment was sent to the Minerals Income Investment Fund. The fund acknowledged receipt of JoyNews Research’s request but had not provided its position on the proposed transaction at the time of publication.

Read more: Chinese takeover of Atlantic Lithium threatens key pillars of Ghanaian participation in Ewoyaa