Kodal Minerals keeps Mali lithium mine running as Islamic militants advance

West Africa-focused Kodal Minerals (LSE: KOD) says operations at its Bougouni lithium mine in southern Mali remain unaffected despite escalating security tensions near the capital, Bamako.

The London-listed company said activities at Bougouni, located about 180 km south of Bamako, continue as normal. Over the weekend, al Qaeda-linked militants advanced toward the capital, cutting off key roads, ambushing military patrols and attacking tanker trucks.

The Malian junta and its Russian partners are struggling to contain the insurgents, who control large parts of the Sahel region. As the situation worsens, the United Kingdom, the United States and Germany have urged their citizens to leave Bamako. Regional countries such as Burkina Faso and Niger have also come under military rule in recent years to fight Islamic extremists.  

Kodal reported that a security guard was killed in an August attack on the Bougouni mine, but no further incidents have occurred. The company said it is working with Malian authorities to strengthen site security for workers and contractors.

Shares in Kodal Minerals fell 18% on Monday afternoon in London to 25 pence apiece, valuing the company at £51.5 million (US$67.5 million). 

New output

Production at Bougouni began in February, and the first truckloads of spodumene concentrate were dispatched last month. So far, more than 10,000 tonnes have been transported to the port of San Pedro in Ivory Coast, with shipments handled by a Malian contractor. Trucking operations continue without disruption.

Management remains on site for a scheduled presidential inauguration of the Bougouni project. The mine targets monthly output of 11,000 tonnes of spodumene concentrate. It is Mali’s second active lithium mine after Ganfeng Lithium’s Goulamina, which opened in late 2024.

Since seizing power in 2021, the military junta in Mali has asserted greater control over the country’s valuable mining resources, especially gold, by taking over mines amid tax disputes and using revenues to consolidate its rule. 

Its grip on the sector faces growing pressure from insurgent groups such as JNIM, which are seizing territory and disrupting fuel supplies and other economic activities through attacks and blockades. Mali’s junta has reshaped the country’s alliances, expelling French forces and deepening ties with Russia for security support.