(Ecofin Agency) - Australia's Leo Lithium, co-owner of Mali's first lithium mine, has sold its entire stake in the project to its joint venture partner, China's Ganfeng Lithium. Mali is set to receive tax payments from the new owner.

Leo Lithium completed the sale of its 40% stake in Goulamina, Mali's first lithium mine, to China's Ganfeng Lithium on November 26, 2024. The Australian company reported that the Malian government received $44.7 million in taxes from Ganfeng’s first payment of $161 million as it took over majority ownership of the mine. Ganfeng is required to pay Leo Lithium an additional $171.2 million plus interest by June 30, 2025.

$LLL FINAL MLBV SALE CONDITION SATISFIED

All conditions precedent to the MLBV Sale have now been satisfied & Completion is scheduled for 26 NOV 2024

At Completion, Leo Lithium will receive the Tranche 1 consideration, to be distributed to shareholders in January 2025 #Lithium pic.twitter.com/Kdjv85eBz8

— MacroMuscle (@8lusky) November 25, 2024

While this payment is pending, it is crucial to highlight that the Malian government expects even greater revenue from Goulamina. Mali's Minister of the Economy, Alousséni Sanou, indicated in May 2024 that the mine should earn Togo over CFA100 billion (around $160 million) yearly.

Production at Goulamina is scheduled to start in 2024. Despite recent declines in lithium prices, no changes have been announced for this project. Estimates indicate that Goulamina can deliver 500,000 tonnes of lithium concentrate each year. 

Following Leo Lithium’s exit, Ganfeng will hold a 65% stake in the mine. The Malian government and investors will hold 30%, and 5%, respectively.

Emiliano Tossou