Kodal Minerals (LON: KOD) confirmed on Friday that its Bougouni lithium project in southern Mali is on schedule for production in the first quarter of 2025, following significant progress in commissioning activities this week.
The company has commenced the commissioning of the first of two crushing circuits at the Stage 1 dense media separation (DMS) processing plant, successfully conducting a brief test using waste rock.
Installation of the second crusher module is ongoing, with completion expected in the coming weeks. Additionally, the steelwork for the main DMS building, screening building, and filtration building is nearly complete.
The focus of installation efforts has now shifted to electrical cabling, motor terminations, and piping installations, which, according to Kodal’s CEO Bernard Aylward, are “critical to starting full commissioning of the plant.”
“A short trial run of one of the two crushing modules using waste material was conducted by the site team earlier this week.
Although the drives were tested using temporary power, it is very encouraging to see the first pre-commissioning activities commence in December 2024,” Aylward said in a statement.
Meanwhile, open pit mining operations at the Ngoualana deposit, the primary ore source for the Stage 1 DMS plant, are advancing in preparation for plant commissioning and future production needs.
Kodal reported that its mining contractor is operating at a steady state, with over 150,000 tonnes of ore on the ROM (run-of-mine) pad, averaging 1.17% lithium oxide.
On the exploration front, Kodal is preparing an in-fill and extension drilling program for the Boumou deposit, which will support the second-stage operations and an updated JORC mineral resource estimate.
Once operational, the Bougouni project will become Mali’s first lithium mine, with an estimated annual spodumene concentrate production of 125,000 tonnes during the first stage.
For the initial four-year period, production will be sourced solely from the Ngoualana deposit, processed via dense media separation methods.
The second stage will increase production to 230,000 tonnes annually, incorporating ore from the Boumou and Sogola-Baoulé deposits, processed at a downstream flotation plant. Based on current mineral resources, the second stage is projected to have a 12-year life.
The total project cost is estimated at US$65 million for Stage 1 and US$175 million for Stage 2, with Stage 1 fully funded by Kodal’s Chinese partner, Hainan Mining. Stage 2 is expected to be financed through cash flow from Stage 1 operations.
Currently, the joint venture between Kodal and Hainan Mining holds 65% of the Bougouni project, with the Mali government owning the remaining 35%.
