Over 20,000 tonnes of lithium concentrate from Kodal Minerals' Bougouni mine in Mali are ready for shipment, but the company faces frustrating delays as the Malian government continues to process its export permit application. This ongoing hold-up was recently confirmed by Kodal CEO Bernard Aylward.

Kodal, which commenced production at Bougouni in February, had secured a deal to sell its entire output to China's Hainan Mining. However, the anticipated mid-June first shipment is now in jeopardy as Malian officials reportedly scrutinize the pricing mechanism of the spodumene concentrate to ensure it is sold at market rates. Aylward revealed to media that negotiations for final approvals have been protracted, dragging on since last year. "We're spending money to produce a product that we want to sell. Our buyer wants to buy it, [but] we can't export," he stated.

The situation at Bougouni is not isolated. Reports suggest that other mining operations across Mali are encountering similar obstacles in obtaining necessary export permits, pointing to a broader trend of heightened governmental control over the sector.

These setbacks emerge at a crucial juncture for the global lithium market.

The Bougouni mine, situated 170 km south of Bamako, aims for a monthly output of 11,000 tonnes of spodumene concentrate. Once fully operational and exporting, it is poised to become Mali's second active lithium project, following Ganfeng Lithium's Goulamina mine, which began production in December.

Mali's military government, which seized power in a coup, has been steadily tightening its grip on the nation's lucrative mining sector. A new mining code, enacted in August 2023, significantly increased the state's potential stake in mining revenues and eliminated certain tax exemptions previously enjoyed by mining firms. The junta's aggressive enforcement of these new regulations has already strained relationships with major international investors, including prominent names like Barrick Gold, Resolute Mining, and B2Gold. The current permit delays for Kodal Minerals appear to be another manifestation of this intensified governmental oversight, as Mali seeks to maximize its returns from its rich mineral resources.

Kodal Minerals is a London-listed exploration and development company focused on critical metals. Its flagship asset is the Bougouni Lithium Project in Mali, which recently commenced production. Kodal aims to be a significant producer of lithium spodumene, a key component for the global clean energy transition, while also holding prospective gold assets in West Africa.