Huayou, seeking control of Ghana’s Ewoyaa lithium mine, faces scrutiny over compensation delays in Congo

Zhejiang Huayou Cobalt, the Chinese firm aiming to acquire Atlantic Lithium's developer of Ghana's Ewoyaa lithium mine, is currently under investigation in the Democratic Republic of Congo due to delayed compensation to communities impacted by pollution from one of its subsidiaries. The Congo Mines Ministry announced on November 6, 2026, that Congodian Dongfang International Mining (CDM), despite financial challenges and a halt in operations, is still required to pay $6 million to affected communities.

This news arrives as Huayou progresses its investment in Ghana's anticipated first lithium mine. Atlantic Lithium shareholders are set to vote on the proposed takeover on December 14, following court approval. In Congo, the issue revolves around a wastewater spill at CDM's Lubumbashi operation in November 2025. Authorities found that a basin meant to contain water had been used to store acidic solutions, affecting nearby communities and leading to a three-month suspension of operations.

CDM was then ordered to compensate Kasapa, Kamatete, and Kamisepe $2 million each, with an additional $6.6 million penalty to the state treasury. However, the implementation of the community compensation program has been delayed. The ministry cited CDM's financial difficulties as a reason for the delays, which recently announced it had ceased its activities.

The ministry emphasized that financial issues or operation suspension do not absolve operators of their obligations to affected populations. For Ghana, this situation highlights the environmental and community responsibilities of the entity investing in the Ewoyaa project. Huayou's participation in the project is already advancing independently of its pending acquisition of Atlantic Lithium.

The company has already finalized an agreement to gain Elevra Lithium's rights and interests in the Ewoyaa project and Ghana portfolio. The proposed takeover of Atlantic Lithium remains a separate deal, contingent on shareholder approval, regulatory approvals from Ghana's Securities and Exchange Commission and the Ministry of Lands and Natural Resources, adherence to the Minerals Income Investment Fund, and fulfilling remaining conditions.

Minister for Lands and Natural Resources, Emmanuel Armah-Kofi Buah, stated that the Congo incident does not imply similar problems will occur at Ewoyaa, but it does provide a benchmark for Ghanaian regulators and affected communities to evaluate the proposed investor's environmental safeguards and compensation plans. The issue goes beyond the financial capacity to run a mine and concerns whether the obligations to impacted communities can be enforced when financial difficulties force an operator to suspend operations.