REGULATORY hurdles in Mali have prevented British miner Kodal Minerals from exporting more than 20,000 tons of lithium concentrate, said Reuters which cited the comments of Kodal CEO Bernard Aylward.
The export delays come at a critical time for the global lithium market, which is already projected to see production decline by as much as 228,000 tons this year, said Reuters. The mineral’s miners have scale back operations due to plummeting prices for the metal essential to electric vehicle batteries, it added.
“We’re spending money to produce a product that we want to sell… Our buyer actually wants to buy it, [but] we can’t export,” Aylward said.
Kodal, which began production at its Bougouni project in February, has an agreement to sell its entire output to Chinese firm Hainan Mining, but has been unable to fulfill this commitment due to unresolved regulatory issues, said Reuters.
Mali’s military government has been asserting greater control over its mining sector to increase national revenues. The West African nation, traditionally known as a major gold producer, is now looking to capitalise on its significant lithium reserves while ensuring favorable terms for the country.
Aylward said Mali have been examining the pricing mechanism to verify that the spodumene concentrate is being sold at prevailing market rates. The company has been engaged in negotiations for final approvals since last year and hoped to secure its export permit in time for a first shipment in mid-June, he said.
“Other operations in Mali are also having delays in the export permits. It is not restricted to the Kodal team,” Aylward noted, suggesting a broader pattern of increased scrutiny across the mining sector.
