Kodal Minerals (LSE: KOD) announced on Tuesday that its Bougouni lithium project in southern Mali remains on track to commence production in the fourth quarter.

The miner reported significant progress on the project, with all funds from the $117.75 million funding transaction with Hainan Mining received, and the mining contractor scheduled to mobilize this month.

“This month we also signed contracts for the supply of the crushing circuit and DMS modules from experienced suppliers in China, and expect these long lead items will be available on site in time to maintain our expectation of first production in Q4 2024,” Kodal Minerals CEO Bernard Aylward said.

According to the company, the Bougouni Stage 1 dense media separation (DMS) circuit is fully financed, with all necessary permits in place, including environmental and social permits, and Kodal’s community development plan recently approved by Mali’s Environment Ministry.

Additionally, an updated Environmental and Social Impact Assessment (ESIA) for the project has been approved, and negotiations with local communities on land compensation are reportedly progressing well.

Located 170km south of the capital, Bamako, Kodal’s Bougouni project is situated in an area hosting several established mining operations, including Hummingbird’s Yanfolila mine and B2Gold’s Fekola Mine.

Kodal is in competition with Australia’s Leo Lithium (ASX: LLL) to develop Mali’s first lithium mine. Kodal received its license in late 2021, while Leo Lithium, now backed by China’s Ganfeng Lithium, was awarded the right to develop the Goulamina asset in August 2019.

Shares of Kodal Minerals fell 8.5% by 12:10 p.m. EDT. The lithium developer has a market capitalization of $129 million.

Source: MINING.COM – Read More