Kodal Minerals is on track to become the first London-listed lithium producer in West Africa with the upcoming launch of its Bougouni project in southern Mali. The company confirmed on Tuesday that it will commence production in the fourth quarter of this year. Kodal has secured a substantial $117.75 million funding package to advance the initial stage of the Bougouni project and has finalized the transfer of project ownership to Kodal Mining UK. This move, in exchange for a $100 million investment from its operating partner Hainan Mining Co., a subsidiary of Fosun International, has resulted in Kodal holding a 49% stake in Bougouni.
Chief Executive Bernard Aylward highlighted the significant progress Kodal has made, stating, “The past 12 months have been truly transformational for Kodal as the Bougouni lithium project has advanced in Mali and transitions from developer to producer.”
The company reported that all road construction, earthworks, and civil engineering work are complete, with key plant equipment, including the DMS and crushing modules, scheduled to arrive in Mali this week. Located 170 km south of the capital city, Bamako, the Bougouni project is situated near several established mining operations, such as Hummingbird’s Yanfolila mine and B2Gold’s Fekola mine.
Kodal was in competition with Australia’s Leo Lithium to establish Mali’s first lithium mine. However, in June, China’s Ganfeng Lithium acquired Leo’s remaining 40% stake in the Goulamina lithium project and aims for first spodumene production in the third quarter of 2024.
In addition to its lithium focus, Kodal reported a significant increase in mineral resources and a 266% rise in net assets. The company has also made strides in implementing community-focused ESG initiatives and advancing its gold projects in West Africa, supported by strategic investments from Hainan.
The positive developments led to a boost in Kodal’s share price, which was trading nearly 3% higher in London at 0.52p each, reflecting a market capitalization of £104.25 million ($137 million).
