FIRST production from the $65m Bougouni Lithium Project in Mali would be delayed to the first quarter of 2025, said the venture’s developer, London-listed Kodal Minerals.
Bernard Aylward, CEO of Kodal Minerals said in a statement that the “cumulative effect of heavy rainfall” combined with shipping delays and transport to site “had led to the prudent decision take by management to advise of a potential delay”.
First production from the proposed 125,000 tons a year lithium mine had been planned for the fourth quarter.
Kodal Minerals also said negotiations continued regarding the potential migration of the Bougouni project’s mining licence to the newly implemented 2023 Mining Code.
Said Kodal: “The current mining licence remains valid and is in good standing with the government and the progress made to date towards the finalisation of the transfer to LMLB of Bougouni is viewed positively”. LMLB is Les Mines de Lithium de Bougouni, a recently established local company owned by Kodal Mining UK Limited.
One aspect of the new mining code is that it allows the state in Mali to take a 30% stake in new projects compared to 20% previously.
Despite the production delay, Bougouni project was expected to meet its pre-production capital of $65m, the company said.
In terms of a second stage development, Bougouni is scoped to produce 350,000 tons annually of lithium.
Shares in Kodal Minerals fell about 1.75% in early London trade on Thursday. On a year-to-date basis, however, the share is 38.2% higher.
