Ganfeng Lithium (HK: 1772) has commenced production of the first stage of its Goulamina spodumene project in Mali, according to the South China Morning Post.
It’s potentially one of the largest lithium mines in Africa. China’s largest lithium producer acquired Australia’s Leo Lithium’s (ASX: LLL) 40% stake in it for US$342.7 million in May.
The deal followed a new mining code introduced last year allowing the Malian government a 10% free carry stake and an additional 25%. Mali recently said it plans to acquire 35% in the mine, leaving Ganfeng with 65%.
The initial stage aims for an annual output of 506,000 tonnes of lithium concentrate, which is expected to nearly double to 1 million tonnes in the second stage. The mine could last for more than 23 years, producing 15.6 million tonnes of spodumene concentrate, according to company estimates.
Malaise in Mali
The production start marks a positive step for a West African country that’s been noted of late for its intransigence with Western miners. Mali, ruled by a military government since coups in 2020 and a year later, held Resolute Mining (ASX: RSG; LSE: RSG) CEO Terence Holohan in essence for a US$180 million ransom in November. Then it issued an arrest warrant for Barrick Gold (TSX: ABX; NYSE: GOLD) CEO Mark Bristow.
The regime wants US$500 million in back taxes it says Barrick owes it. Bristow has said it might have to close its Loulo-Gounkoto mine complex if a deal can’t be reached.
Mali President Assimi Goita, claiming to be a transitional leader, said Ganfeng’s lithium mine is extremely important for the West African nation, according to the South China Morning Post. He said the processing plant’s start is a significant step among the West African country’s natural resources.
China’s ambassador to Mali, Chen Zhihong, attended the inauguration ceremony and described the Goulamina mine as a new example of cooperation.
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