Kodal Minerals to be first lithium producer in West Africa listed in London

Kodal Minerals (LSE: KOD) is set to become West Africa’s first London-listed lithium producer when its Bougouni project in southern Mali begins production, planned for this year’s fourth quarter.

The lithium and gold-focused company confirmed on Tuesday its timeline to first production and noted it had finalized a US$117.8 million funding package to develop Bougouni’s first stage.

Kodal also said it had transferred the project ownership to Kodal Mining UK in return for a US$100 million investment from its operating partner, China’s Hainan Mining, a subsidiary of Fosun International. Kodal now has a 49% stake in Bougouni. Hainan owns 15% of Kodal. 

“The past 12 months have been truly transformational for Kodal as the Bougouni lithium project has advanced in Mali and transitions from developer to producer,” CEO Bernard Aylward said in the statement.

All road construction, earthworks and civil engineering have been finished, with plant equipment like the dense medium separator and crushing modules scheduled to arrive in the country this week, the company said.

Near B2Gold

Located 170 km south of the capital city Bamako, the Bougouni project is in an area hosting several established mining operations, including Hummingbird’s Yanfolila mine and B2Gold‘s (TSX: BTO) Fekola mine.

Kodal was in competition with Australia’s Leo Lithium (ASX: LLL) to develop Mali’s first lithium mine. In June, China’s Ganfeng Lithium bought Leo’s remaining 40% stake in the Goulamina lithium project and said it continued to target first spodumene production from it in the third quarter of 2024.

Kodal also reported on Tuesday a significant increase in mineral resources, strong financial growth with a 266% increase in net assets, and the implementation of community-focused environmental, social and governance initiatives. 

Additionally, the company is advancing its gold projects in West Africa thanks to Hainan’s investments.

Shares in Kodal initially traded nearly 3% higher in London at 0.52 pence each before falling 1.6% to close at 0.5 pence. This leaves the company with a market capitalization of £99.6 million ($176.8m)