Name of the Project
Bougouni lithium project.

Location
The project is located in southern Mali.

Project Owner/s
Kodal Minerals. Singapore-based Suay Chin holds 29.02% in Kodal.

Project Description
The feasibility study for the Bougouni lithium project proposes an openpit contract mining operation and conventional milling and flotation processing facility, capable of treating two-million tonnes a year of ore, complete with asso­ciated infrastructure to mine and process about 16-million tonnes of pegmatite ore over an initial 8.5-year mine life.

Production will average 220 000 t/y of 6% spodu­mene concentrate.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an estimated net present value, at a 7% discount rate, of $300-million and an after-tax internal rate of return of 51%, with a payback of 1.7 years.

Capital Expenditure
The project is estimated at $117-million.

Planned Start/End Date
Kodal aims to have the mine in production in the second half of 2021.

Latest Developments
Kodal Minerals has signed a memorandum of understanding (MoU) with Sinohydro Corporation, a specialist engineering, infrastructure, power developer and construction contractor, to work together to develop the Bougouni project.

Sinohydro is a subsidiary of Chinese State-owned PowerChina, which is a leading engineering and construction company globally.

The key objectives established by the MoU include that Sinohydro will conduct, at its own expense, a review of the development proposed for the Bougouni project and provide input, in particular, on procurement and civil engineering aspects of the feasibility study; and review the financing requirements for the project and, subject to a satisfactory review, assist in sourcing financing for the project.

Sinohydro will work with Kodal’s largest shareholder Suay Chin International and, in turn, with Shandong Ruifu Lithium Industry, which operates a lithium carbonate and lithium hydroxide production plant in Tai'An, China, and which is expected to be an end-user of the spodumene to be produced at the Bougouni project.

Following completion of the feasibility review and development plan and demonstration of project financing, Kodal and Sinohydro will use reasonable endeavours to negotiate a mutually acceptable engineering, procurement and construction (EPC) contract.

Kodal has granted Sinohydro an initial six-month exclusivity period to review and advise on financing for the Bougouni project and develop an EPC contract proposal.

Following the approval of Kodal’s environmental and social impact assessment in November 2019 and receipt of an environmental permit for the Bougouni project, the company completed a feasibility study and submitted a mining licence application in January this year. 

Once a mining licence is granted, Kodal can swiftly progress to the development of the project.

Key Contracts and Suppliers
None stated.

Contact Details for Project Information
Kodal Minerals, tel +44 20 3463 2260.