Firefinch and Leo Lithium settle disputes on the Goulamina project in Mali with Ganfeng buying 40% stakes for US$342 million

Firefinch and Leo Lithium, the previous and current operator of the Goulamina lithium project in Mali, has successfully negotiated a comprehensive settlement with the Government of Mali, resolving disputes related to the project. As part of the settlement, Ganfeng Lithium will pay the Mali Government US$60 million on behalf of Leo and Firefinch.

The agreement includes significant regulatory and operational shifts for the Goulamina project. The project will transition to the 2023 Malian Mining Code, increasing the government's stake from 20% to 30%, with a further 5% held by Malian nationals.

Further solidifying Ganfeng's role, Leo Lithium has sold its 40% interest in the Goulamina project to Ganfeng for US$342.7 million. This deal come after a US$65 million transaction where 5% of the project was transferred to Ganfeng.

The agreements ensure Ganfeng will manage the upcoming project phases, fully funding the remaining capital until initial revenues. Leo Lithium will assist as a contractor to ensure a smooth operational transition through Q4 2024.

The Goulamina project is set to begin spodumene production in Q3 2024, with the Mali Government committed to finalising all necessary permits and approvals.

Author: Hongqiu Su | Battery Metals Analyst Associate | London Office, Shanghai Metals Market
Email: lilysu@smm.cn