Kodal transfers permit for lithium mine in Mali

Kodal Minerals has successfully transferred the exploitation permit for the Foulaboula deposit part of its Bougouni lithium project in Mali to its local subsidiary, Les Mines de Lithium de Bougouni (LMLB).

This strategic move finalizes the legal framework required under Mali’s updated mining regulations and secures the permit’s validity, paving the way for the company to commence spodumene concentrate exports in the coming quarter.

Mining code

The updated ownership structure of LMLB reflects compliance with Mali’s new mining code, which mandates greater state participation. Kodal Mining UK (KMUK), a joint venture between Kodal Minerals and China’s Hainan Mining, holds a 65% stake in LMLB. Of KMUK’s share, Kodal owns 49% while Hainan holds a majority 51%. The Malian government controls the remaining 35%, satisfying new national ownership requirements introduced in 2023.

This progress brings Kodal’s Bougouni project closer to production, with the company targeting monthly output of 11,000 tonnes of spodumene concentrate. Once operational, Bougouni is set to become Mali’s second active lithium mine, following Ganfeng Lithium’s launch of production at the Goulamina project in late 2024. Located about 170 kilometers south of Bamako, the Bougouni site is surrounded by other major mining operations, including Hummingbird Resources’ Yanfolila gold mine and B2Gold’s Fekola gold project.

The political landscape in Mali has posed challenges for foreign investors, particularly since the military government introduced a new mining framework that increased state revenue shares and removed certain tax exemptions. While the reforms have strained relationships with several large mining firms, including Barrick Gold and B2Gold, Kodal Minerals appears to have navigated the regulatory changes effectively by restructuring its local operations and ensuring full compliance.