Mali: the Kodal lithium mine comes on stream

Mali confirms its rise in the lithium mining sector with the commissioning of its second mine, at Bougouni. Following the inauguration of the Goulamina mine in December 2024, which has an annual production capacity of over 500,000 tonnes, British company Kodal Minerals announced on Tuesday 11 February 2025 that it would be producing the first spodumene concentrate at Bougouni.

This milestone marks a significant step forward for Kodal Minerals and its Chinese partner Hainan Mining, the mine's majority shareholder. "The first production of spodumene concentrate at Bougouni marks an important milestone for Kodal and I would like to thank our entire team for this achievement, which fully reflects the dedication and efforts of everyone involved," said Bernard Aylward, CEO of Kodal Minerals.

The first spodumene concentrate produced at Bougouni has a lithium content of 5.52%. This quality could be further improved as the processing plant is gradually ramped up over the coming weeks. While no precise date has been given for commercial production, Kodal Minerals expects the first shipments to China to take place by the end of March 2025.

The Bougouni mine represents an investment of around $65 million, financed jointly by Kodal Minerals and Hainan Mining. The first phase of operation is expected to produce 125,000 tonnes of spodumene concentrate per year, with a ramp-up to 230,000 tonnes per year.

With these two mining infrastructures now operational, Mali is positioning itself as a key lithium player in West Africa. According to estimates by Benchmark Mineral, the country is set to become Africa's second-largest lithium producer by 2025, behind Zimbabwe, accounting for 14% of the continent's supply.

However, despite these advances, Mali could further maximise the economic benefits of its lithium by developing a local processing chain. At present, neither lithium hydroxide nor lithium carbonate production feature in the government's official plans. A move in this direction would enable the country to increase the added value of its mining sector and better meet the growing global demand for lithium, which is essential to the energy transition.

The government and local investors should receive a 35% interest in each of the two mines. An opportunity which, if properly exploited, could boost Mali's economic and industrial development in the long term.