Hainan Mining disclosed records of investor relations activities on August 28, explaining the progress and costs of its lithium business. The company's 5 million tonnes of lithium carbonate equivalent target under its "15th Five-Year Plan" will be advanced through two paths: organic growth and external mergers and acquisitions.
On the organic growth side, feasibility study work for the Phase II project at the Bougouni lithium mine in Mali has already begun. The company plans to complete the feasibility study and compliance procedures by the end of 2026, start construction in early 2027, with a construction period of about one year, and aims to put the project into production in early 2028. Phase II lithium concentrate capacity is planned at 200,000 to 300,000 tonnes per year, which is expected to support an expansion of about 30,000 tonnes in downstream lithium salt processing capacity after commissioning. On the external side, the company said it will continue to look for acquisition opportunities in high-quality upstream lithium resources at home and abroad.
In terms of capital expenditure, Hainan Mining expects overseas capital expenditure of about 1.2 billion yuan this year, of which about 1.1 billion yuan will go to Rock Oil exploration and development projects, with the remainder used for lithium mine project payments. If there are no new projects in the next two years, overseas capital expenditure is expected to remain at 1 billion to 1.5 billion yuan per year, mainly directed to oil and gas and lithium salt mining.
Responding to questions about tightening approval for overseas investment, the company said production and lithium concentrate transportation at the Bougouni lithium mine in Mali are currently normal. Phase II capital expenditure is planned to be funded mainly by self-generated funds from the project company's own sales proceeds, and current assessment indicates that relevant approvals are not involved for the time being.
On costs, the company disclosed that unit production cost of lithium concentrate at the Mali mine is about US$700 per tonne. The mine is currently in a ramp-up stage, and the company expects costs to have further room to decline as output rises and cost-reduction measures are implemented. For lithium salts, the integrated full cost of lithium hydroxide is about 70,000 to 80,000 yuan per tonne, of which lithium concentrate cost accounts for 70% to 80%, and processing cost does not exceed 25,000 yuan per tonne. The company said it aims to keep processing cost within 20,000 yuan per tonne.
Regarding overseas risk management, the company said it has established investment decision-making and post-investment management mechanisms, and will form localized operations teams after project implementation. The Bougouni lithium mine in Mali is currently under controllable risk and stable operation. The company's investment strategy adheres to a prudent and incremental approach, avoiding large one-time investments, and advancing projects in phases based on dynamic risk assessment.
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