Name of the Project
Goulamina lithium project.

Location
Southern Mali, about 50 km west of Bougouni.

Project Owner/s
Leo Lithium announced its exit from the Goulamina project in May 2024, with the sale of its remaining 40% interest to joint venture partner Ganfeng Lithium.

Project Description
The project is one of the world’s biggest lithium developments.

Stage 1 spodumene concentrate production is estimated at 506 000 t/y, increasing to a peak of 880 000 t/y in Stage 2. The DFS envisages a standard openpit mining operation.

The flowsheet will comprise:

• three-stage crushing to a P80 of 6.2 mm, with a fine-ore bin and overflow dead stockpile;
• closed-circuit ball milling and screening to an estimated P80 of 180 µm, based on a closing screen P100 of 212 µm;
• two-stage magnetic separation;
• three-stage flotation (roughing, cleaning and recleaning);
• concentrate dewatering, filtration and storage;
• separate flotation and process tailings thickening, with common tailings pumped to a tailings storage facility;
• reagent mixing and distribution;
• separate flotation and process water circuits; and
• air services.

The DFS update proposes the construction of a 2.3-million-tonne-a-year throughput plant, incorporating in the design the infrastructure and equipment for the construction of a Stage 2 expansion to increase plant throughput to four-million tonnes a year.

The project is expected to have a minimum mine life of 23 years, producing 15.6-million tonnes of spodumene concentrate over that period.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of $4-billion and an internal rate of return (real) of 97.8%.

Capital Expenditure
Leo Lithium released a midterm budget update in April 2023, forecasting revised capital costs to complete the project of $318-million comprising $285-million for construction and $33-million for operational readiness activities. As of December 31, 2023, about $241-million of the forecast $285-million construction total had been committed to suppliers and service providers. This guidance remains in place, except the unplanned import customs duties and fees.

Planned Start/End Date
Full production is expected in 2025.

Latest Developments
Leo Lithium has received conditional approval from the Mali government for the sale of its remaining 40% stake in Mali Lithium BV (MLBV) to China’s Ganfeng, a critical step in the company’s exit from the project.

The Mines Minister has conditionally approved the transaction, requiring the submission of transaction documents and payment of capital gains tax (CGT). Leo has already paid $7.6-million for CGT on a 5% sale finalised on May 6. Any additional CGT on the 40% sale will be paid in due course.

Leo announced in May 2024 that it had agreed to sell its remaining interest in MLBV, having failed to reach an agreement with government about issues pertaining to the project.

Commenting on government’s approval, Leo MD Simon Hay said it was a positive step in the process for the company’s eventual exit from the project.

With Ganfeng eventually moving to full ownership of MLBV, the joint venture partners decided Ganfeng would assume management responsibilities of the project this month, prior to the completion of the sale. As Ganfeng is still building its operational team, the partners also agreed that Ganfeng would engage Leo under a services agreement to provide management services for the group for up to six months, ending on November 13, at the latest.

Key Contracts, Suppliers and Consultants
Lycopodium (updated DFS, and engineering, procurement and associated project management services contract); and Corica Mining Services (mining contractor).

Contact Details for Project Information
Gangfeng Lithium media cooperation, Evan Sun, email sunyifan@ganfenglithium.com.