Fosun International Subsidiary Hainan Mining Strikes $112 Million Deal for Majority Stake in Mali Lithium Mine

  • 30-Jan-2023
  • Journalist: Jaideep

China: Hainan Mining, a subsidiary of Fosun International Limited and the industrial platform for mining and resources within Fosun, has agreed to purchase a majority stake in a Lithium mine in Mali from Kodal Minerals, a British-listed company. The deal is worth $112 million.

The funding package was arranged between Hainan Mining and its wholly owned UK-incorporated subsidiary Xinmao Investment Co., Ltd. Kodal Minerals is a mineral exploration and development company specializing in Lithium and gold assets based in West Africa.

Hainan Mining has taken a 14.81 percent stake in Kodal Minerals and now owns 51 percent of its subsidiary, Kodal Mining UK. This ownership comes with all the mining and exploration rights of the Bougouni Lithium Project in southern Mali, which was announced in the company's recent statement.

Kodal Minerals CEO Bernard Aylward expressed his delight at Hainan's investment in Kodal and stated it will be greatly beneficial for the development of the Lithium project.

Chairman Liu Mingdong of Hainan Mining, listed on the Shanghai Stock Exchange, has announced an investment in Kodal as part of the company's strategy to increase resource and feedstock security and construct a Lithium Hydroxide supply chain.

The mining firm already has two core businesses in iron ore mining, processing, and sales through its Shilu mine, as well as exploration, development, production and sales of oil and gas via its subsidiary Roc Oil Limited. Continuing its strategic plan, Hainan is developing its third business line in new energy metal mining and processing.

Hainan Mining has made a big move into the Lithium sector, as they announced their proposed investment of 1.065 billion yuan ($164 million) to construct a processing plant to make battery-grade Lithium Hydroxide.

The project is expected to be completed in Phase I by June 2022, with an annual production capacity of 20,000 tonnes of battery-grade Lithium Hydroxide set in Yangpu Economic Development Zone. This will further contribute to EV sector's booming demand for Lithium products.

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