(Ecofin Agency) - Last November, Mali's 2023 Mining Code was applied to the Bougouni lithium mine project. Under the memorandum of understanding signed on the occasion, Bamako required a $15 million payment, split into two equal installments. 

Malian authorities are waiting for a $7.5 million payment from Kodal Minerals (UK) and Hainan Mining (China), partners on the Bougouni lithium project. Kodal disclosed this information in a note dated April 4; a note where the firm asked Bamako for more time to pay what it owes.

In November 2024, the Malian government sealed a memorandum of understanding (MoU) covering this project. The MoU enforced the country’s new Mining Code and outlined the financial terms tied to the $177.5 million "Hainan Transaction" meant to fund the Bougouni project. 

Under the deal, Bamako should have received $15 million in two installments, one due right after the MoU was signed and the other before March 31, 2025. However, this deadline was not met. Kobal said it could not meet its obligations due to delay in transferring the mining license between its subsidiaries, Future Minerals SARL and Les Mines de Lithium de Bougouni (LMLB). While all procedures are reportedly complete, final approval and signature from Mali’s interim leader, Assimi Goïta, are pending. 

Mali’s government has yet to respond to Kodal’s extension request. Meanwhile, Kodal continues advancing Bougouni toward commercial production. Under the new Mining Code, Mali can acquire up to a 35% stake in mining projects, with 5% reserved for local investors. The Bougouni mine is expected to produce 125,000 tonnes of spodumene concentrate during its first development phase.

Recently, Mali’s Minister of Economy and Finance, Alousséni Sanou, highlighted various reforms that helped the country collect CFA500 billion from mining companies. The official added that an additional CFA750 billion should have been secured before March 31, 2025, but no information was disclosed in this regard so far.

This article was initially published in French by Aurel Sèdjro Houenou

Edited in English by Ola Schad Akinocho