Kodal Minerals has announced the commencement of spodumene concentrate production at its Bougouni lithium project in southern Mali, marking a significant step for the company and the Malian lithium sector. This achievement positions Bougouni as Mali’s second operating lithium mine, following closely behind the Goulamina project.

The initial production of spodumene concentrate has achieved a lithium oxide (Li2O) grade of 5.53%, aligning with Kodal’s projected targets. This successful initial output validates the Dense Media Separation (DMS) processing plant's efficacy and paves the way for a production ramp-up to 10,000 tonnes per month in the coming weeks. The focus now shifts to the final stages of commissioning and rigorous stress testing of the DMS plant to ensure it reaches its nameplate capacity and achieves consistent, steady-state production.

This milestone is particularly relevant to the chemical industry as spodumene concentrate is a crucial feedstock for lithium chemicals used in battery production. The increasing demand for lithium-ion batteries, driven by the electric vehicle revolution and energy storage solutions, makes the Bougouni mine a significant contributor to the global lithium supply chain. The consistent supply of high-quality spodumene concentrate is essential for chemical manufacturers producing lithium carbonate and lithium hydroxide, the key components in battery manufacturing.

Kodal’s CEO, Bernard Aylward, emphasized the importance of this production milestone and confirmed the first shipment of lithium spodumene concentrate to China’s Hainan Group is on schedule for the end of the current quarter. This initial shipment will provide critical validation of the product quality and logistical arrangements, further solidifying the project's viability.

The successful development of the Bougouni mine underscores the growing importance of Mali as a lithium producer. The project’s progress, completed within budget at approximately $65 million, and ahead of schedule, demonstrates effective project management and execution. This accomplishment is particularly noteworthy given the complexities often associated with mining projects in developing regions. The project's funding was secured through Kodal’s partnership with Hainan Group, which holds a 51% stake in the venture.

Kodal’s achievement comes amidst a dynamic period for the mining sector in Mali. The introduction of a new mining code in August 2023, which increases the state’s share of mining revenues and eliminates tax exemptions, has created a complex environment for mining companies. Despite these challenges, Kodal has successfully navigated the regulatory landscape and brought the Bougouni project to fruition. The company is currently finalizing the transfer of the mining license to its Chinese partner, Hainan Group, with regulatory approvals pending.

The Bougouni project, situated 170 km south of Bamako, benefits from its location in a region with established mining operations. This proximity to existing infrastructure and mining expertise has likely contributed to the project’s efficient development. Kodal and Hainan jointly own 65% of the project, with the Malian government holding the remaining 35%. The commencement of production at Bougouni strengthens Mali's position in the global lithium market and provides a crucial source of this essential element for the chemical industry.