(Ecofin Agency) - The Bougouni lithium mine, in Mali, could produce 2 million tonnes of spodumene over a lifespan of 8.5 years. Construction works at the mine, under development, are co-financed by Hainan Mining, a Chinese company.

Kodal Minerals terminated the right of first refusal (ROFR) with Suay Chin International for its Bougouni lithium mine in Mali. The British firm announced the termination on March 28th. This is good news for Hainan Mining, a Chinese firm that co-funds the project’s construction. 

Indeed, the termination means Hainan Mining could secure all of the mine’s projected spodumene output. The Chinese company, which was in talks for 20% of this output, will now negotiate for the remaining 80%. It is worth noting that the mine could deliver 2 million tons of spodumene over 8.5 years or the duration that phase I of the Bougouni project is expected to last.

“Our negotiations with our JV partner Hainan have thus ensured that we will achieve the optimum market price for our spodumene with no discount offered and we are now confident of achieving this positive result for all our products from Bougouni,” said Bernard Aylward, CEO of Kodal Minerals. 

The Bougouni project is owned by Kodal Mining UK Limited, a joint venture controlled 51% by Hainan Mining and 49% by Kodal. The Malian mine is expected to commence production by the end of 2024.

Emiliano Tossou