Originally scheduled to begin production in 2024, the commissioning of the Bougouni lithium mine has been postponed to the first quarter of 2025. Kodal Minerals, the British company in charge of the project, announced the postponement on September 26, citing delays due to heavy rains and logistical difficulties related to the shipping and transport of equipment to the mine site.
The accumulation of adverse weather conditions and equipment delivery delays has forced us to postpone the start of production until the first quarter of 2025,” explained Bernard Aylward, CEO of Kodal Minerals. Despite this setback, significant progress has been made, including the arrival and installation of the prefabricated processing plant on site, as well as preliminary ore extraction to build stockpiles for the plant’s commissioning.
During its first phase of operation, the Bougouni mine is expected to produce 125,000 tonnes of lithium concentrate per year for four years, thanks to an initial investment of $65 million. Phase 2 of the project, scheduled for between 2028 and 2036, would increase annual production to 230,000 tonnes.
The postponement comes amid a significant drop in lithium prices, which fell by 90% between December 2022 and September 2024, according to Benchmark Mineral Intelligence. Despite this price collapse, Kodal Minerals’ plans remain unchanged. The Goulamina project, led by Chinese giant Ganfeng Lithium, is also expected to come into production at the end of 2024, confirming Mali as a key player in the lithium sector in Africa.
The start of these projects bodes well for the Malian economy. According to the African Development Bank (AfDB), lithium production and exports are expected to boost Mali’s GDP growth from 4.3% in 2023 to 5.3% in 2025. The mining sector, which accounts for about 80% of the country’s exports and 35% of its revenues, is thus expected to diversify beyond gold, contributing to the country’s economic stability.
In 2022, the extractive industry represented about 9% of Mali’s GDP, according to the Extractive Industries Transparency Initiative (EITI). With lithium, Mali hopes to strengthen its position in global natural resource markets.
