African Critical Mineral Race: China's Kodal Mining Partnership in Mali Faces Export Obstacles at the Bougouni Lithium Mine

Kodal Mining has yet to receive an export license three months after the commencement of production at the Bougouni lithium mine in Mali.

• CEO Bernard Alward publicly expressed concerns over the export suspension, causing its stock price to fall to a six-month low.

• Ongoing scrutiny by Mali on pricing practices and license transfers continues to delay shipments of spodumene.

Kodal Mining's application for an export license at the Bougouni lithium mine in Mali has encountered delays, as the mine has been operational for more than three months. In an interview, the company's CEO Bernard Alward expressed dissatisfaction, stating that although lithium concentrate is being produced and buyers are ready, no export authorization has been granted, with the situation further deteriorating since then.

In a statement released on May 19, Kodal Mining attempted to downplay growing investor concerns and reiterated its good relations with the Malian government. Previously, on May 15, Reuters published an article in which Alward stated: "We are investing to produce a product we want to sell... Our buyers want to buy it, but we cannot export."

This report triggered extensive coverage across African and international media. On May 16, Kodal Mining's stock price on the London Stock Exchange fell to 0.31 GBX (0.0031 pounds), reaching its lowest point in six months. The next day, the company calmed shareholders on X (formerly Twitter) and issued a formal statement the following Monday.

According to Kodal, the export obstacles stem from delays in the transfer of licenses, which initially hindered the full operational approval of its Malian subsidiary. The approval of the mining license transfer was eventually granted at the cabinet meeting on April 16, which Kodal welcomed as an important milestone. However, the export license has yet to be finalized.

The company currently holds 27,000 tons of lithium spodumene concentrate at the Bougouni site. No shipment schedule has been provided, and the company remains unable to convert its output into cash.

CEO Alward further explained that the Malian government is evaluating the pricing mechanism to ensure that lithium spodumene concentrate is sold at a fair market price. Given that Kodal's Chinese partner, Hainan Mining, is the majority shareholder in the joint venture and the designated buyer of lithium production, this issue is particularly sensitive. Alward also hinted that other lithium mining projects in Mali, including the Goulamina site, may face similar reviews, although this has not yet been officially confirmed.

Despite a slight recovery in Kodal's inventory to 0.32 pounds on May 20, questions remain about when exports from Bougouni will begin and how long the pricing and licensing review in Mali will cause operational delays.

Source: ecofinagency

Original Article: https://www.toutiao.com/article/1832759752714313/

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