Mining firm Kodal Minerals’ wait to get permission to export lithium concentrate produced at its West Africa project continues this week amid pricing examination.
The UK-listed company is waiting to ship 27,000 metric tons of the battery material to China’s Hainan Mining, according to a report by news agency Reuters.
The material is stockpiled at Kodal’s Bougouni mine in Mali.
Kodal’s chief executive Bernard Aylward told Reuters that Mali officials were examining the company’s pricing mechanism to ensure its spodumene concentrate was sold at market rates.
Kodal is locked in discussions with Mali government officials, but has said it expects to receive an export permit ‘soon’.
The mining firm first announced a delay with the permit on 15 May, citing ‘regulatory hurdles’.
The company began production at its Bougouni mine in February, and has agreed to sell its entire output to Hainan Mining.
A feasibility study forecast the mine could reach an annual production of 220,000 tonnes of 6% grade spodumene concentrates containing 71% recoverable lithium.
The delays come amid a potential 228,000 ton shortfall in global lithium production this year, according to market researchers Fastmarkets.
Mali is known for exporting precious stones and gold. However, the country is aiming to develop its lithium reserves.
In January, market research firm Benchmark Source reported that Mali could become Africa’s second largest lithium miner this year, behind Zimbabwe. The country is forecast to account for 14% of Africa’s mined lithium, according to Benchmark’s ‘Lithium Forecast’.
Last December, China’s Ganfeng Lithium announced it has started production from the first phase of its Goulamina spodumene project in Mali.
The mine is expected to produce 500,000 tons of spodumene concentrate annually.
Ganfeng bought the mine in May 2024 from its former joint venture partner Leo Lithium.
The deal is due to close on 30 June when Leo Lithium receives its third and final payment of $171million, plus accrued interest.
The Australian firm’s interest in the Goulamina Lithium Project was held through the holding company Mali Lithium.
