Permit delays stall Kodal’s lithium exports in Mali

Kodal Minerals (LON: KOD) said Thursday that over 20,000 tonnes of lithium concentrate from its Bougouni mine in Mali are ready for delivery, but the company remains blocked from exporting due to unresolved permit issues.The company began production at Bougouni in February and has agreed to sell its entire output to China’s Hainan Mining. Final export approvals, however, have yet to be secured. Chief executive Bernard Aylward told Reuters that Malian officials are scrutinizing the pricing mechanism to ensure Kodal’s spodumene concentrate is sold at market rates.He noted he company has been locked in negotiations for final approvals since last year and is now finalizing its export permit in the hopes of sending its first shipment in mid-June.“We’re spending money to produce a product that we want to sell (…) Our buyer actually wants to buy it, [but] we can’t export,” Aylward said. He added that negotiations for approvals have dragged on since last year, and the company now hopes to finalize its permit and ship its first batch by mid-June. Other mining operations in Mali are reportedly facing similar delays in obtaining export permits.The setbacks come as the global lithium market is expected to tighten amid falling prices that have forced some producers to scale back. Fastmarkets projects an oversupply of just 10,000 tonnes in 2025, and swinging to a 1,500-tonne deficit in 2026.Bougouni, located 170 km south of Bamako, is targeting a monthly output of 11,000 tonnes of spodumene concentrate. The mine is expected to become Mali’s second operational lithium project after Ganfeng Lithium’s Goulamina mine began production in December.Since seizing power, Mali’s military government has tightened its grip on the mining sector. A new mining code introduced in August 2023 raised the state’s stake in mining revenues and eliminated tax exemptions for mining firms. The junta has aggressively enforced the new rules, straining relationships with major investors, including Barrick Gold, Resolute Mining and B2Gold.(While files from Reuters)Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com