British mining firm Kodal Minerals has been unable to export over 20,000 metric tons of lithium concentrate from Mali due to ongoing regulatory delays, according to CEO Bernard Aylward.
Despite commencing production at its Bougouni project in February and securing a sales agreement for all its output with China’s Hainan Mining, the company remains blocked from exporting.
“We’re spending money to produce a product that we want to sell. Our buyer wants to buy it — but we can’t export,” Aylward told Reuters.
The export setback comes as global lithium production is projected to decline by as much as 228,000 tons this year, driven by falling prices that have forced many producers to scale back operations.
Mali, traditionally a major gold producer, is working to tap into its lithium potential. However, its military-led government has been tightening control over the mining sector in an effort to boost state revenues.
This has included arrests of foreign executives and the seizure of gold stocks amid tense negotiations with multinational gold miners.
In Kodal’s case, Aylward noted that Malian authorities are closely reviewing the company’s pricing mechanism to ensure that the spodumene concentrate is sold at fair market value.
The company has been in talks with regulators since last year and is now finalising its export permit, with hopes of shipping its first batch by mid-June.
“This is not unique to Kodal. Other operations in Mali are also facing delays in obtaining export permits,” Aylward added.
China’s Ganfeng Lithium, which operates Mali’s only other lithium mine, declined to comment on the situation. Mali’s mining and trade ministries also did not respond to requests for comment.
