PERTH (miningweekly.com) – Lithium developer Leo Lithium has finalised a shipping solution for product from its Goulamina lithium project, in Mali.

The company on Tuesday told shareholders that it had signed an agreement with SEA-Invest for port services, including product unloading, storage and ship-loading at the Abidjan port.

Under the agreement, Leo has secured warehouses with a footprint of 9 000 m² or product storage directly on the wharf of the Port of Abidjan, equating to around 60 000 t of product storage. The agreement stipulates a minimum product throughput of 250 000 t/y, however, there is no upper limit on quantities which can be exported.

The agreement includes handling unit rates and loading rates which are in line with cost forecasting in the definitive feasibility study update, Leo told shareholders.

“The first plank of our logistics strategy is now in place. We have secured ideal storage facilities for Goulamina spodumene concentrate production at the Port of Abidjan, a major West African deep-water harbour suitable for the large bulk carriers that will transport our product to end-users,” said MD Simon Hay.

“This is a fantastic outcome as it will minimise material movements and optimise logistics costs. We are very pleased to commence our relationship with SEA-Invest, who provide full port services and will be an essential link in our supply chain. SEA-Invest have an excellent reputation as an international port operator and have been active in Africa for over 16 years.”

A final investment decision on the Goulamina project was taken in January this year, and Leo is aiming to start mechanical construction and electrical installation in the second half of 2023, with commissioning and start-up slated for the first half of 2024.

It is estimated that the project would require an initial $225-million investment for the Stage 1, 2.3-million-tonne-a-year development, producing 506 000 t of spodumene concentrate a year, increasing to 880 000 t/y in Stage 2, for a further investment of $70-million.