Mali Gains 35% Stake in Country’s Second Lithium Project

The Malian government announced a significant milestone in its mining sector by formally applying the new mining code to the Bougouni lithium project, securing a 35% stake in the venture.

British company Kodal Minerals, co-owner of Bougouni, shared the news on November 1, highlighting the government’s bolstered role in this high-potential sector.

The MoU with the State for the transfer of the Bougouni mining licence is the final legal step required as we rapidly progress the construction of the project, with production on track for the first quarter of 2025, said Bernard Aylward, CEO of Kodal Minerals.

Under the terms of the agreement, Kodal Minerals and its Malian subsidiary, which it operates in partnership with China’s Hainan Mining, have obtained a 10-year mining license for Bougouni, with the option for unlimited renewals.

This agreement comes on the heels of a similar arrangement earlier in 2024 for the Goulamina lithium project, which, once operational, is expected to become Mali’s largest lithium mine and a significant contributor to the country’s economy.

The revised mining code, enacted in 2023, mandates that the government holds up to a 30% stake in mining projects, including a 10% free share.

In addition, local investors can acquire a 5% stake, giving the Malian state and local investors a combined 35% interest in new mining ventures.

The transitional government of Mali, led by Assimi Goïta, has been making moves to take maximum advantage of its mineral resources; in a similar step, the government recently announced the full takeover of the Yatela gold mine from foreign companies, AngloGold and IAMGOLD.

The Yatela gold mine, which began operation in 2001, was 80 per cent owned by the Sadiola Exploration Company Limited, a joint venture in which AngloGold Ashanti and IAMGOLD each had a holding of 40 per cent, while the Government of Mali owned the remaining 20 per cent.

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