(Ecofin Agency) - Mining company Birimian announced it has revised estimated operating cost downwards on Goulamina Lithium project in Mali, following the optimization of the pre-feasibility study on the mine.

Initially estimated at $379 per ton, the cost has been dropped to less than $300/t as the company expects significant savings.

It reported that transport and handling costs, previously estimated at $ 187/t, have been reduced by about 47% to $100/t, while the electricity cost could decrease by at least 25% and that of fuel by about 15%.

Indeed, following a meeting with several transport companies, the company decided to replace its initial model of hybrid rail-road transport with a road-only transport model.

“The cost reductions identified to date will have a significant positive impact on our ability to deliver a highly competitive operation, making Goulamina one of the world’s leading low-cost hard rock lithium projects,” commented Greg Walker, the CEO.

Birimian said that although some projects have been announced to upgrade the railway linking Mali to Senegal, and between Burkina Faso and Cote d’Ivoire, they would not be completed within a deadline that would allow considering railway as an initial transport option for Goulamina project.

Let’s recall that Goulamina is included in a large project 100%-owned by Birimian. According to the previous pre-feasibility study released last October, construction work should start by mid-2019 and the mine should enter into production early 2021.

Louis-Nino Kansoun