Name of the Project
Bougouni lithium project.

Location
Southern Mali.

Project Owner/s
Kodal Minerals announced in November 2024 that Kodal Mining UK (KMUK) – a company owned  by Hainan (51%) and  Kodal (49%) – and the Malian government have entered into a binding memorandum of understanding (MoU) to finalise the transfer of the mining licence from Future Minerals to the Mali-registered mining company Les Mines de Lithium de Bougouni (LMLB).

The MoU confirms that the licence will be governed by the 2023 Mining Code of Mali. Key terms include the allocation of a 35% equity interest in LMLB to the Mali State and national investors, with the remaining 65% held by KMUK.

The licence, initially valid for ten years, will be eligible for renewal as per the mining code in effect at the time of renewal.

The agreement extends customs and duties exemptions during the construction phase and guarantees the issuance of all necessary permits, including export permits for spodumene.

The MoU also stipulates a $15-million payment from KMUK to the Mali State, payable in two instalments – the first $7.5-million following the MoU signing, and the final amount before March 31, 2025.

Upon completion, the licence will be fully compliant with Mali’s legal requirements.

The MoU stipulates that the State’s and national investors’ shares cannot be diluted below 35% in any future capital increases in LMLB. KMUK retains the right to recover all capital investment and intercompany loans as a priority.

Further terms include the establishment of a shareholder agreement, which will ensure the LMLB board includes at least four State-appointed directors, including two independent directors.

The MoU also formalises the approval of all agreements linked to the Hainan transaction and confirms the associated $15-million payment by KMUK to the State, with specified deadlines for each instalment.

Project Description
Bougouni’s mineral resource comprises three advanced prospects – Sogola-Baoulé, Ngoualana and Boumou.

Stage 1 of the project will include the processing of coarse-grained spodumene material from the Ngoualana deposit, feeding one-million tonnes a year of lithium ore to a dense-media separation processing plant. A conventional circuit will be used to maximise spodumene recovery of more than 130 000 t/y of spodumene concentrate. 

Stage 1 will have an initial four-year life-of-mine (LoM).

Stage 2 will comprise a downstream flotation plant that will exploit the finer-grained spodumene resources at Sogola-Baoulé and Boumou, and Bougouni's longer-term exploration prospects. Processing material from Boumou and Sogola-Baoulé deposits will feed two-million tonnes a year of lithium ore to the flotation plant; output from the deposits is estimated at 230 000 t/y.

Stage 2 will have 12-year LoM.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
Stage 1 involves low capital expenditure of $60-million to $70-million.

Stage 2 will cost about $175-million and will be funded with cash flow from Stage 1.

Planned Start/End Date
Not stated.

Latest Developments
KMUK has completed discussions with the commission to finalise the Bougouni mining licence transfer to the LMLB and confirm the terms of the Hainan transaction that supports the project’s development.

The MoU establishes migration to the 2023 Mining Code and includes provisions for customs and tax exemptions for the project’s construction phase. Customs exemptions include the temporary admission of vehicles and machinery needed for construction, import duty exemptions on essential tools, oils and greases for machines, petroleum products, spare parts and equipment permanently incorporated into the project.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Kodal Minerals, tel +44 20 3463 2260.