Ganfeng Lithium's Goulamina lithium spodumene project Phase I in Mali goes into operation

Shanghai (Gasgoo)- On December 15, Ganfeng Lithium Group Co., Ltd. ("Ganfeng Lithium"), one of the world's top producers of the commodity used in new energy vehicles, announced that the first phase of its Goulamina lithium spodumene project in Mali, Africa, officially commenced operations on the same day. The project is operated by Ganfeng Lithium's wholly-owned subsidiary, Ganfeng International.

The Goulamina project, located in southern Mali, is one of the largest lithium mines in Africa. The site spans approximately 100 square kilometers, with an estimated total ore resource of around 211 million tonnes, containing approximately 7.14 million tonnes of lithium content (LCE), with an average lithium oxide grade of 1.37%.

The first phase of the Goulamina project is designed to produce 506,000 tonnes of lithium concentrate annually, with plans for an expansion in the second phase to increase annual production capacity to 1 million tonnes.

Ganfeng Lithium stated that the launch of the new project will provide the company with a stable and high-quality lithium resource supply, securing resources for its lithium salt production lines. This will enhance the company’s self-sufficiency in lithium resources, improve profitability, and have a positive impact on its future financial performance.

In a related development, on the evening of December 5, Ganfeng Lithium announced that its board had approved a proposal for Ganfeng International and its partner, Lithium du Mali SA ("LMSA"), to enter into a share transfer agreement with the government of Mali.

Under the terms of the agreement, the Malian government will acquire a 35% stake in LMSA. Of this, 10% will be granted free of charge in accordance with Mali’s mining laws. The government will purchase an additional 25% of LMSA's shares for 20 billion West African CFA francs (approximately USD 32 million), with the transaction amount to be offset against future dividends received from LMSA, to be fully paid off during the life of the mining license. Additionally, the Malian government has committed to using 20% of the dividends from its 35% stake annually to repay the acquisition cost. The agreement also includes tax reductions and special exemptions for LMSA, as well as policy support for the development and operation of the Goulamina project’s second phase

Following this agreement, Ganfeng Lithium will indirectly hold 65% stake in LMSA, while the government of Mali will hold a 35% stake. This transaction will not affect Ganfeng’s control or management of LMSA. The Malian government’s tax incentives and policy support will create a favorable business environment for the company's investments, ensuring strong backing for the second phase of the Goulamina project and other future initiatives.

In addition to the Goulamina project, Ganfeng Lithium's Cauchari-Olaroz lithium brine project in Argentine is progressing well, with production capacity reaching about 80% utilization. The Mariana lithium brine project is expected to begin trial production by the end of this year, with ramp-up scheduled for next year.