Critical Mineral Contest: China's Ganfeng Lithium Industry Transfers 35% of the Goulamina Lithium Mine to the Government of Mali, including 10% as free transfer

Foreign Media: Mali Will Invest $34 million to Acquire 25% of the Goulamina Lithium Mine

Reports indicated that according to Mali's Mining Law in 2023, the government is entitled to acquire 25% of mining projects besides the 10% free participation shares. According to this regulation, the government of Mali currently owns 35% of the country's first lithium mine - Goulamina.

In December 2024, China's Ganfeng Lithium Industry Co., Ltd. agreed to transfer 35% of its shares in the Goulamina project to the government of Mali. According to the annual report released by Ganfeng Lithium Industry in late April 2025, this includes 10% of free shares and 25% of purchasable shares, with the latter to be acquired at a cost of 200 billion CFA francs of the African Financial Community (approximately $34.3 million).

The agreement stipulates that the government of Mali will not pay the full amount at once. Instead, this amount will be gradually repaid through the government's 20% annual dividend from the mine. Ganfeng Lithium Industry used a discount rate of 19%, estimating the present value of this transaction to be approximately $23.2 million.

No detailed information has been provided on how the valuation of 200 billion CFA francs was reached. However, Mali's Mining Law in 2023 (especially Article 80) specifies that the acquisition cost for the state should reflect the acquisition ratio multiplied by the total cost of exploration and feasibility studies, with interest calculated at the rate of the Central Bank of West African States (BCEAO) plus 2% during the investment period.

This acquisition of 25% of the shares marks a strategic move by Mali to maximize mining benefits. The new mining law increases the state's maximum shareholding ratio in mining enterprises from 20% (10% free shares, 10% paid shares) to 30%, and adds a requirement for 5% local investor shareholding. The government expects this reform to generate an additional income of up to 5 trillion CFA francs annually. Discussions are still ongoing regarding how to allocate and manage these 5% local shares.

The Goulamina mine commenced production in December 2024, with a designed annual output of 500,000 tons of spodumene, and it is expected that the products will be exported to China.

Source: ecofinAgency

Original Source: https://www.toutiao.com/article/1832758657887241/

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