(Ecofin Agency) – Mali should establish itself in 2024 as the leading producer of lithium in West Africa, thanks to the Goulamina project. Under the previous mining code, the government should have obtained a maximum 20% interest in the country’s first lithium mine.
Mali’s first lithium mine will be 30% owned by the government, with an additional 5% interest for local investors. This is the announcement made on May 8 by the Australian mining company Leo Lithium, which also specifies that it has sold its stake in Goulamina to the Chinese Ganfeng Lithium, already a shareholder in the project.
For several months, Leo Lithium and the Malian State have been holding discussions relating to the application of the new mining code adopted in 2023 by Bamako to the Goulamina project which until then benefited from the rules of the previous code. For the Malian state, the transfer of the Goulamina mining permit between the previous owner Firefinch and the new Leo Lithium took place irregularly, requiring the obtaining of a new permit.
Leo Lithium challenged this irregularity without winning its case, leaving the Goulamina project in a sort of legal limbo preventing the expected start of production this year. With its Chinese joint venture partner, the Australian company finally reached an agreement with the Malian authorities, winning their case. As a result, the project will be entirely driven by Ganfeng Lithium which is expected to pay $342.7 million to acquire Leo Lithium’s 40% stake.
As a reminder, the entry into production of the Goulamina deposit is now expected in the third quarter of 2024, which will make Mali the leading West African producer of lithium. The mine has a mine life of more than 23 years, with annual production of up to 1 million tonnes of spodumene concentrate.
Emiliano Tossou
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