(Ecofin Agency) – In May 2023, the Malian government signed an agreement to guarantee 35% national interests in the country’s first lithium mine, Goulamina. According to the mining code adopted in 2023, the state can obtain 30% interest in mining projects, as well as 5% for local investors.
The Malian government has just obtained the application of the new mining code to the Bougouni project, considered the second lithium project in the country. According to a press release published on 1is November by the British Kodal Minerals, co-owner of the project, the State and local investors will hold 35% interest in the future mine.
It should be noted that this agreement is a new victory for the government, which earlier this year already obtained the application of the 2023 mining code to the Goulamina project, the future largest lithium mine in Mali. The mining code revised last year increases state participation from a maximum of 20% previously to a maximum of 30% now, including a free participation of 10%. Local investors also have the opportunity to acquire a 5% stake, making the total 35%.
In the case of Bougouni, the agreed acquisition price for the additional 25% interest to be paid by Mali amounts to approximately $4.3 million. In return, Kodal Minerals and its subsidiary in the country, co-owned with the Chinese Hainan Mining, now have a mining permit valid for 10 years and renewable as many times as necessary.
« The memorandum of understanding with the State for the transfer of the Bougouni mining license is the final legal step necessary for the rapid advancement of the construction of the project, whose production is planned for the first quarter of 2025», commented Bernard Aylward, PDG de Kodal Minerals.
As a reminder, Hainan Mining invested more than $100 million in the Bougouni project last year in order to be the majority owner. Bougouni can deliver 125,000 tonnes of spodumene concentrate over four years (2024-2028). The second phase of operation of the mine should make it possible to produce 230,000 tonnes of concentrate over the period 2026-2036.
Emiliano Tossou
Also read:
05/16/2024 – Mali targets $165 million in revenue/year with its first lithium mine
09/26/2024 – Mali: entry into production of the Bougouni lithium mine postponed to 2025
