Name of the Project
Bougouni lithium project.

Location
Southern Mali.

Project Owner/s
Mineral exploration and development company Kodal Minerals.

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 (DMS) processing plant. A conventional circuit will be used to maximise spodumene recovery of more than 125 000 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
Kodal Minerals produced the first spodumene concentrate in February 2025.

Latest Developments
Kodal Minerals has signed an offtake agreement for the spodumene concentrate produced by the Stage 1 DMS processing plant.

The offtake agreement is between the local Mali-registered mining company Les Mines de Lithium de Bougouni (LMLB) – a subsidiary of Kodal Mining UK (KMUK) in which Kodal has a 49% shareholding – and Hainan Mining Co.

Hainan will be the exclusive buyer of 100% of the product produced by the DMS plant.

The offtake agreement is for four years, with a yearly review of the quantities to be sold and the floor price for the concentrate.

Kodal has said the spodumene concentrate price is to be referenced to the Shanghai Metals Market (SMM) published price for 6% spodumene concentrate, which is a cost, insurance and freight (CIF) price for delivery in China.

The final price received by LMLB takes into consideration price adjustments based on the grade and quality of material delivered, and a calculated conversion of the free-on-board price to CIF price at the loading port in West Africa.

Kodal has said no discount is applied to the SMM published price for the calculation, reflecting the arms’ length negotiation of the parties in finalising the agreement.

The company has noted that the parties are negotiating an agreed floor price to take effect from January 1, 2026. The parties are to agree a yearly quantity and schedule, with an expected minimum of 8 000 wet metric tonnes to be shipped every month.

LMLB will receive an initial payment upon loading of a shipping vessel with spodumene concentrate at the export port in West Africa – initially Abidjan port, in Côte d’Ivoire – equivalent to 95% of the value of the shipment, with the remaining 5% to be paid following delivery and confirmation at the destination port in Hainan, China.

Kodal has said the offtake agreement is a “take or pay” agreement where LMLB must supply the spodumene exclusively to Hainan, and Hainan must buy and take delivery of, or pay for, an agreed yearly quantity.

A procedure for sampling, assay and weighing of the spodumene concentrate will be completed at the mine site upon departure from Bougouni, at the loading port, before loading and final confirmation at the destination port in Hainan.

During the procedures, a Certificate of Analysis and Certificate of Weight will be finalised, which will be used for the calculation of payment.

Kodal has said the product quality required has been specified for lithium oxide (Li₂0) content, levels of iron impurity and moisture content; these items will be measured in the sampling procedures.

Additionally, the company has noted that the offtake agreement provides for dispute resolution, should variations in the assay grade and weight arise.

Meanwhile, the DMS processing plant continues to operate well at Bougouni, and technical improvements continue to be made as the plant nears nameplate capacity.

The DMS processing plant has produced more than 40 000 t of spodumene concentrate to date and material is loaded into bags ready for export.

Kodal has said the LMLB team continue to work with the Mali government to finalise requirements for an export licence to facilitate the first sale of spodumene concentrate.

The first phase of the Bougouni project has a 1.4-million-tonne-a-year beneficiation production line, which is expected to produce 100 000 t/y to 120 000 t/y of lithium concentrate with a yield of more than 5.5% Li₂O.

Key Contracts, Suppliers and Consultants
None stated.

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