Ganfeng Gains Mali's Approval for $343 Million Stake Purchase from Leo Lithium

Published: Jun 20, 2024 11:59

Source: SMM

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On 17 June, Australia's Leo Lithium received conditional approval from the Malian government to sell its remaining 40% stake in Mali Lithium BV to China's Ganfeng Lithium for $343 million.

On 17 June, Australia's Leo Lithium received conditional approval from the Malian government to sell its remaining 40% stake in Mali Lithium BV to China's Ganfeng Lithium for $343 million. This transaction is part of Leo Lithium's exit strategy from the Goulamina lithium project, one of the world’s largest lithium projects.

The approval also includes securing two critical permits for the project, including a self-generation power license valid for 20 years. This license allows on-site power generation, essential for the project's operational phases.

Mali’s new mining code, adopted in 2023, potentially increases the government's ownership in the project from 20% to 30%, with an additional 5% allocated to a local entity. Leo Lithium decided to sell its stake after failing to reach an agreement with Mali government.

Ganfeng will take over management responsibilities this month, with final documentation expected soon. Leo Lithium will cease involvement by 13 November. The Goulamina project is expected to produce its first spodumene in Q3 2024.

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

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