This Week (9.1-9.5) Overseas Lithium Highlights [SMM New Energy Overseas Weekly Highlights]

[Kodal Obtains Mali Lithium Ore Export Permit]

UK-listed miner Kodal Minerals has officially received an export license for spodumene concentrates from the Mali government, clearing a key hurdle for the first shipment from its Bougouni lithium mine in the south.

According to a formal document signed by Minister of Mines Professor Amadou Keita, the company is permitted to export up to 125,000 mt of spodumene concentrates, pending completion of final administrative procedures.

Kodal CEO Bernard Aylward stated, "The grant of the export license is a key step in the development of the Bougouni project and reflects the strong support of Mali's Ministry of Mines and the government for the project's continued progress and expansion."

The document also specifies that lithium concentrate pricing will be referenced to the SMM spodumene benchmark price, but the government reserves the right to verify and adjust the price. Kodal has previously signed an offtake agreement with China's Hainan Mining, agreeing to sell all production to the latter based on the SMM benchmark price.

Logistically, the company has signed with a leading logistics operator in Mali, planning shipments via ports in the Republic of Côte d'Ivoire and committing to pay all taxes and duties in full.

The Bougouni lithium mine is located 170 km south of the capital Bamako and is operated by the local Malian entity Les Mines de Lithium de Bougouni SA, with Kodal holding a 49% stake. The project is designed to produce 11,000 mt of spodumene concentrates per month, making it the second lithium mine to commence production in Mali after Ganfeng Lithium's Goulamina mine (which started production in December 2024).

Source: ming.com

[Ukraine Launches Tender for Large Lithium Mine]

Ukraine is tendering for the development of a large lithium mine in the central Kirovohrad region as part of a mineral agreement with the US; however, ownership of the project remains subject to legal disputes.

Ukrainian Prime Minister Yulia Svyrydenko confirmed the tender for lithium mining at the Dobra deposit while announcing the approved mineral resource development plan. She stated in a Telegram post on Monday, "We expect investors not only to extract but also to develop value-added industry chains."

Data from the Ukrainian Geological Survey shows that Ukraine holds about one-third of Europe's lithium resources. The Dobra tender is Step-1 of the mineral cooperation agreement between Kyiv and Washington and a core element of the Trump administration's "transactional" aid policy towards Ukraine, aimed at weakening China's dominance in the global metals sector. However, this tender conflicts with New York-based Critical Metals.

Potential Dispute

Critical Metals claims control over the Dobra mining rights through its largest shareholder, Australian company European Lithium. On Tuesday, Critical Metals' stock price fell 5.3% in New York to $5.87 per share, with a market capitalization of approximately $609 million; European Lithium closed down 2.1% in Sydney at A$0.092 per share, with a market capitalization close to A$132 million (US$86.1 million).

Mykhailo Zhernov, a director of both companies, stated in an interview with the Financial Times in July that the Dobra license should have been issued to Petro Consulting, which European Lithium acquired in 2024. Although the court had ruled that the government should issue the license the previous year, he said the license was never formally granted.

However, neither Critical Metals nor European Lithium provided the Financial Times with relevant documents regarding the license or the court ruling.

TechMet, a mining investment company based in Dublin with the US government as one of its major investors, also expressed interest in developing the lithium mine. Its CEO, Brian Menell, stated earlier this year that the company had been evaluating the project since 2023 and confirmed to the Financial Times that it would bid when the tender is launched.

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[Codelco Warns Chile's Copper Production May Stagnate at 5.5 Million mt/Year]

Chile's state-owned copper giant, Codelco, has warned that the country's copper production may stagnate at around 5.5 million mt per year due to multiple challenges.

Codelco Chairman Máximo Pacheco stated at the Ecos de la Minería mining summit in Santiago that the industry is facing "enormous difficulties," including increased mining depth, declining ore grades, and persistently rising costs. Chile is the world's largest copper supplier, and if production stagnates in the long term, coinciding with accelerated demand growth driven by the energy transition, the global copper market could tighten further.

Despite the severe challenges, Pacheco emphasized that the company is still advancing upgrades and developing new projects. He confirmed that the company will continue its cooperation with SQM on the lithium project in the Salar de Atacama; this week, it will sign an exploration agreement with BHP for the Anillo copper mine; and a joint mining plan with Anglo American is expected to be finalized in the coming weeks.

SQM President Gina Ocqueteau stated in an interview with the local media La Tercera that she is optimistic the cooperation agreement with Codelco will be approved before Chile's next government takes office in March. She noted that the details of the cooperation may be finalized ahead of schedule, but if delays occur, it will postpone the revenue needed for government projects.

Awaiting Minister's Signature

Chilean Minister of Energy and Mines Aurora Williams confirmed that the special contracts required for the collaboration between the state-owned copper company and Codelco have successively passed reviews by the Comptroller General and the state-owned copper commission Cochilco. "The only thing left to do is sign the contracts," she said.

The contracts specify terms for exploration, mining, environmental protection, and economic conditions. Under the agreement, Codelco will gain majority control over SQM's lithium production in northern Chile. Once approved, this partnership will solidify a landmark alliance for one of the world's most strategic lithium assets.

Some presidential candidates have stated that if the agreement is not finalized during the term of current President Gabriel Boric, they will review or even revoke it, which has pressured the government to accelerate implementation to fulfill its commitment to strengthen the state's role in lithium production.

Source: ming.com

[Quebec Government Terminates Funding for Northvolt Battery Project]

The Quebec government has withdrawn from Swedish Northvolt AB's electric vehicle battery plant project in Canada, ending a high-profile initiative derailed by the company's bankruptcy.

"Today, we are terminating the investment in Northvolt in Quebec," said Minister of Economy Christine Fréchette in a press release. "As the company failed to submit a satisfactory proposal aligned with Quebec's interests, we will exercise our rights to recover the investment as much as possible. The project has failed, and we are disappointed."

In August this year, California-based lithium-sulfur battery startup Lyten Inc. agreed to acquire all of Northvolt's remaining assets in Europe. The transaction amount was not disclosed, but the U.S. buyer stated it was completed at a "significant discount" to the estimated valuation of approximately $5 billion. Lyten had expressed interest in taking over the Canadian project, estimated to cost over $5 billion to build, but the Quebec government was unenthusiastic. Northvolt's collapse has come at a high political cost for the ruling Coalition Avenir Québec.

"This decision is deeply regrettable, especially given the extensive efforts we have made and continue to make to find a buyer," Northvolt's Canadian subsidiary said in an emailed statement. "We emphasize that Northvolt North America has not entered bankruptcy proceedings and retains sufficient resources to restart the project."

Quebec has lost C$270 million (approximately $196 million) in the Northvolt project, but according to data from Fréchette's office, the province still holds a senior secured loan tied to the factory land near Montreal, totaling C$260 million in principal, interest, and related fees. The press release noted that after the termination of the commitment, 352 megawatts (MW) of electricity would be released for other industrial projects in the province.

Northvolt's bankruptcy also caused losses for Canadian pension funds: the Ontario Municipal Employees Retirement System fully wrote off its investment of 325 million Canadian dollars; the Caisse de dépôt et placement du Québec wrote down its investment of 150 million Canadian dollars to zero; and the Investment Management Corporation of Ontario also impaired its investment of 400 million Canadian dollars.

In 2023, to attract Northvolt, the Canadian federal and Quebec governments pledged to match the manufacturing subsidies under the US Inflation Reduction Act (IRA), with potential support exceeding 5 billion Canadian dollars during the construction and battery production phases.

Source: ming.com

[UN Committee Says Portugal Withheld Lithium Mine Information]

A UN committee stated on Wednesday that Portugal violated an international treaty by blocking public access to key information during the environmental permitting process for Europe's largest lithium mine project.

In 2023, the Portuguese Environment Agency (APA) approved London-listed firm Savannah Resources to develop a lithium mine in the Barroso region in the north of the country; the area has been designated as a World Agricultural Heritage Site since 2018.

Local residents and environmentalists have long opposed the project and said on Wednesday that the findings of the UN Aarhus Convention Compliance Committee further support their demand to revoke the license.

In a statement, the APA stated that, despite differing interpretations of the applicable provisions of the convention, it has "always strictly followed administrative procedures and acted in accordance with the law," adding that all necessary information had been made public.

Savannah Resources declined to comment.

The committee determined that Portugal failed to respect citizens' rights regarding access to environmental information and participation in the permitting process—rights enshrined in the 2001 convention, which Portugal ratified in 2003.

The committee pointed out that the APA did not respond to requests for environmental information within the statutory time limit and did not inform the public how to appeal when refusing such requests.

The Spanish conservation organization Fundación Montescola filed a complaint against the authorities in 2021, with two Portuguese groups acting as observers during the process.

Joam Evans, president of Montescola, welcomed the decision, stating that the environmental permit should be revoked.

Savannah aims to supply spodumene ore to the European EV industry—spodumene is a key source of lithium for batteries—and stated that Barroso has the largest spodumene deposit in Europe, with estimated high-grade lithium reserves of at least 28 million mt. The company hopes to begin production in 2027.

Source: Ming.com