The Malian government has backed a joint venture (JV) transaction between ASX-listed Firefinch and lithium developer Jiangxi Ganfeng Lithium Co over the Goulamina lithium project.
Earlier this year, the two companies struck an agreement under which Ganfeng will make a $130-million cash investment in return for a 50% interest in the project vehicle and also secure up to $64-million in debt funding to bring the Goulamina project into production.
“The Goulamina transaction will materialise the development of the first producing spodumene concentrate operation in West Africa, and on Malian territory. It will allow Mali to attract new investments focused on metals used for the manufacture of batteries and the field of renewable energies. In addition, as part of the transaction, there is a focus on the creation of local jobs, the establishment of local infrastructure and the rapid monitoring of community engagement plans to meet the needs of local communities, which also aligns with the Malian Mining Code in terms of local content,” Mali Minister of Mines, Energy and Water Lamine Seydou Traore said.
Firefinch MD Dr Michael Anderson said that the support of the Malian government and the local community were key to the success of the Goulamina project.
Goulamina will be the next large-scale hard rock project to enter production, and the first of its kind in West Africa, with production targeted for 2023.