Hainan Mining to buy majority stake in lithium mine in Mali
Hainan Mining, a subsidiary of China’s Fosun International Limited has revealed plans to acquire a majority stake in a lithium mine in Mali.
The mining firm will purchase the stake from Kodal Minerals, for a sum of US $112 million. The funding package has been agreed with Hainan Mining and its wholly owned UK-incorporated subsidiary Xinmao Investment Co., Ltd
Strategy
The investment in Kodal is in line with Hainan‘s strategy of improving the level of resource and feedstock security and building the lithium hydroxide supply chain. Hainan Mining will take a 14.81% stake in Kodal Minerals and own 51% of its subsidiary Kodal Mining UK, which holds all mining and exploration rights of the Bougouni Lithium Project in southern Mali. Spodumene is the main product at the Bougouni mine, with ore resources in its three mining areas totaling 21.31 million tons, with an average grade of 1.11 percent lithium oxide.
Hainan Mining will also provide a nearly USD5.7 million shareholder loan to Kodal Mining UK after the transaction, and undertake the mine project’s development and operation, per the agreement. Hainan Mining is listed on Shanghai Stock Exchange. Its core businesses are iron ore mining, processing and sales through its Shilu iron ore mine; oil and gas exploration, development, production and sales through its subsidiary Roc Oil Limited; and resource investment and financing.
Based on Hainan’s strategic plan, it is developing its new energy business (mining and processing of new energy metals) as its third business line. In August 2021, Hainan Mining announced the proposed investment of 1.065 billion yuan ($164 million) to develop a new processing plant to make battery-grade lithium hydroxide as a starting point of its move into the lithium sector, supporting the booming demand in the EV sector.
