China’s Ganfeng Lithium Group Co. has unveiled plans to acquire full ownership of a lithium mine under development in Mali, committing approximately $408 million to buy out its partner, Leo Lithium Ltd., in the Goulamina project.
The board of directors of the Chinese lithium mining and processing giant has greenlit the proposal to purchase Leo Lithium’s 40% stake in the Goulamina project for $342.7 million.
This move follows Ganfeng’s earlier agreement in January to acquire an additional 5% interest from Leo for $65 million.
Ganfeng and Leo Lithium are aggressively pursuing the development of the Goulamina project, with ambitions to commence production within the year
. Their aim is to compete with Australian firm Kodal Minerals to be the first operational lithium project in Mali, a country known for hosting some of Africa’s largest gold mines, managed by companies like Barrick Gold Corp. and B2Gold Corp.
Despite facing a significant decline in profit in 2023 due to an over 80% plunge in lithium prices, Ganfeng remains steadfast in its strategy to secure global reserves of this crucial battery metal.
The company is also focused on ramping up production capacity in anticipation of robust demand growth in the coming years.
In addition to its operations in China, Ganfeng holds overseas lithium resources in Argentina, Australia, and Mexico.
The acquisition deal with Leo Lithium is subject to approval from Leo’s shareholders and regulatory authorities, as disclosed in a statement to the Shenzhen Stock Exchange.
Once these stake purchases are finalized, Ganfeng will assume complete ownership of the Goulamina project, further consolidating its position in the global lithium market.
