【SMM Analysis】Update on Mali's Bougouni Lithium Project: Steady Production Ramp-up and Orderly Mining License Transfer Progress

Kodal Minerals recently provided an update on the progress of its Bougouni Lithium Project located in southern Mali. Operated by its UK subsidiary KMUK, the project is nearing completion of construction and successfully produced its first batch of lithium spodumene concentrate in February 2025. The dense media separation (DMS) processing plant at the site has cumulatively produced over 11,000 tonnes of spodumene concentrate to date, demonstrating steady progress toward commercial production. During the final week of March 2025, the plant processed 13,400 tonnes of raw ore, yielding 1,920 tonnes of spodumene concentrate grading 5.63% Li₂O.

The project has already stockpiled spodumene concentrate equivalent to its expected first-month production volume, with inventory continuing to grow to ensure stable future supply. Once the Malian government completes the mining license transfer and issues export permits, the concentrate will be shipped to China via the Port of Abidjan in Côte d'Ivoire. Regarding the license transfer, the process to shift ownership from Future Minerals SARL to locally registered Les Mines de Lithium de Bougouni SA (LMLB) is advancing smoothly. The restructuring of LMLB's shareholding has received signed approvals from Mali's Ministers of Mines and Finance, with only the final endorsement from President Assimi Goïta remaining.

Due to delays in the license transfer process, KMUK has formally requested an extension for its second payment of $7.5 million to the Malian government as stipulated in the agreement. The government has acknowledged receipt of the request and is currently reviewing it. Bernard Aylward, CEO of Kodal Minerals, stated that ongoing optimization and modifications at the processing plant are delivering positive results, with production ramp-up proceeding as planned. The accumulating concentrate stockpile and increasing production capacity have laid a solid foundation for achieving the target output of 11,000 tonnes per month. The company is fully supporting KMUK to complete the license transfer and looks forward to the President's final approval marking the successful conclusion of this critical process.

As a strategically important lithium development project in West Africa, the successful commissioning of the Bougouni Lithium Mine will contribute positively to diversifying the global lithium supply chain. This case also highlights the crucial role of host country policies in mining development. As the project transitions into commercial production, it is poised to become a significant source of lithium supply for the global new energy industry.