A second major lithium mine for Mali

The region rose to the occasion, bringing together local authorities, communities and sector stakeholders for the official inauguration of the new Bougouni lithium mine. Presided over by the Head of State, General of the Army Assimi Goïta, the ceremony was presented as “a strong signal to international markets, technical and financial partners, and industrial operators”, reflecting its role in the national strategy for mining diversification.

In this context, Les Mines de Lithium de Bougouni (LMLB SA) deployed an ambitious organisational set-up, designed to provide a comprehensive presentation of the project—from its technical components to its economic and community impacts—thereby underlining the strategic importance of this new stage for Mali’s lithium sector.

The Bougouni region, a flagship for lithium mining

The administrative reorganisation initiated in 2012 and completed in July 2022 elevated Bougouni to the status of a region. Long known to mining stakeholders for hosting the emblematic Morila gold mine and one of Mali’s oldest operating mines, the Kalana gold mine, the area has, in recent years, been transformed by lithium exploration activities into a global hub for this mineral.

Covering an area of 36,670 km², the Bougouni region offers Mali significant gold and lithium potential, owing to the richness of its subsoil in pegmatites. The announced reserves of the two mines currently in operation—estimated at 130 million tonnes of lithium-bearing ore—highlight the scale of the opportunities in this area. Several other projects have also been announced: licences held by African Lithium Mining, Xantus and Moketi point to further stages of development ahead.

The inauguration prompted strong local mobilisation. Residents of Bougouni gathered in large numbers to welcome the official delegation, reflecting the importance attached to the opening of this new phase of exploitation. The arrival of the President of the Transition marked the start of the ceremony, which unfolded in an atmosphere of attentiveness and clear focus on the project’s economic prospects.

Lithium: a strategic turning point

“The lithium project of Les Mines de Lithium de Bougouni […] strengthens the strategic positioning of our country within the select circle of lithium-producing nations, a substance that is undeniably strategic for a world committed to ecological transformation.” With these words, the Minister of Mines, Professor Amadou Keïta, set the tone of the inauguration ceremony, before outlining Mali’s ambitions in terms of mining diversification and local lithium processing.

Mali’s shift is undoubtedly driven by a global context in which demand linked to electrification (electric vehicles, energy storage, rural electrification, etc.) continues to grow. The Minister of Mines quickly looked ahead: “Our country intends to derive maximum benefit from this resource by continuing its policy of diversification and openness to structuring partnerships.” He went on to announce further exploration projects aimed at “placing Mali on the map of global lithium suppliers”.

It is worth recalling that Lithium du Mali S.A., which has been operating the Goulamina mine for just under two years, represents an investment of around USD 545 million, or CFA 305 billion. The Goulamina deposit is the fifth-largest lithium deposit in the world and is set to become the fourth-largest spodumene production unit globally, and the largest in Africa in terms of production capacity. As for the Bougouni project, led by Les Mines de Lithium de Bougouni SA (LMLB SA), it represents a strategic initiative designed to position Mali sustainably among the major players in the global lithium market.

Kodal Minerals UK, the majority shareholder in LMLB SA, estimates the mine’s lifespan at 11 years, with exploitation of around 19.8 million tonnes of ore at an average grade of 1.07% lithium oxide (Li₂O). With a metallurgical recovery rate of 65.8%, total production is estimated at 2.44 million tonnes of spodumene concentrate.

The project’s financial projections are optimistic, with total operating costs estimated at USD 1.41 billion, corresponding to an average cost of USD 576 per tonne of concentrate produced. On this basis, LMLB SA expects to generate cumulative revenues of USD 2.25 billion, with earnings before interest, tax, depreciation and amortisation (EBITDA) of USD 821.5 million and net profit after tax of USD 374.8 million. According to the mine’s estimates, the Malian state’s share of the project’s financial flows is valued at USD 254.9 million, including USD 67.5 million in royalties and USD 187.4 million in corporate income tax.

The Chairman of the Board of Kodal Mining UK Limited, Teng Lei, praised the synergy between international expertise, national vision and community engagement, bringing together Mali, China and the United Kingdom around a shared objective. In his speech, he reaffirmed his group’s commitment “to actively contribute to Mali’s economic growth and to foster the emergence of a competitive and sustainable lithium industry, for the benefit of the African continent and the world at large”. In this spirit, Teng Lei presented the LMLB project as a “symbol of modern, responsible and sustainable exploitation of natural resources, while also serving as a key lever for job creation, skills development and regional infrastructure”.

Geoeconomic influence and local transformation

For his part, the President of the Transition first highlighted the consolidation of Mali’s position within the global value chain of critical metals essential to the energy transition, before recalling the national vision of turning the exploitation of this mineral into a driver of Mali’s geoeconomic influence.

Whether expressed by the regional governor or the traditional authorities present, one of the central stakes of this new mine lies in the concrete delivery of local content commitments. The mine announces 500 direct and indirect jobs during Phase 1, a figure that could rise to 800 jobs at full capacity. It also reports more than CFA 317 million invested in community development projects, including the construction and rehabilitation of road infrastructure, support for schools, and assistance to agricultural and health activities.

These initiatives are complemented by CFA 446 million in land compensation and an annual commitment of CFA 72.5 million dedicated to the Community Development Plan (CDP). Community committees have been established to ensure transparency in recruitment, environmental monitoring and local governance of the project.

In line with the objectives set by the state for the mining sector, the Minister of Mines delivered a clear message “to the remaining sceptics” regarding the determination of the Transitional Government “to put an end to the disorder that has long prevailed in the mining sector. Mining cannot accommodate operators who lack the necessary financial and technical capacity, act as land speculators, and de facto place themselves outside the rules of proper mining practice while paying nothing to the State of Mali”.

This warning is likely linked to the cancellation of 121 mining titles, which occurred a few days before the inauguration of the Bougouni mine—a decision that attracted significant public attention without overshadowing the ceremony’s significance. It should nevertheless be noted that the fuel crisis and the terrorist threat in the region complicated the participation of several sector stakeholders, as well as that of a representative of the Chinese Embassy. Unlike the Goulamina project, no Chinese representative was therefore invited to speak.