Kodal Minerals (AIM:KOD) has received the full payment of US$21.3 million ($32.18 million) from offtake partner Hainan Mining for the first shipment of spodumene concentrate from the Bougouni Lithium Project in southern Mali.
The first payment is for an invoiced amount of 95% value of the spodumene concentrate. The final payment for the first shipment will then be paid to Les Mines de Lithium de Bougouni (LMLB), which is a subsidiary of the mining licence owner.
Kodal will continue to transport concentrate to the port of San Pedro during this month and into January 2026, with the aim of building up a stockpile of more than 20,000 tonnes at port ready for a second shipment in Q1 2026.
The proposed export timetable has planned regular shipment loads of a minimum of 20,000 tonnes concentrate, representing two months of production. Bougouni has approval for the export of the next 20,000 tonnes of material.
In conjunction, Kodal resumed dense media separation (DMS) processing this week after a planned maintenance and engineering works for the resolution of bottleneck issues and adjustments to optimise plant performance, as well as the build-up of the run-of-mine stockpile.
Management expects the DMS processing plant to be operating at nameplate capacity in the near future.
CEO Bernard Aylward says after the transport and shipment of the first export of spodumene concentrate, the Bougouni mining operation continued with the build-up of the run-of-mine stockpile ahead of the full restart of production, which ensures the plant can produce 10,000 tonnes per month.
“Following completion of the main improvements, the plant recommenced operations in late September, treating low-grade and transitional ore to ensure that the optimisation work was successful in upgrading the plant to reach its targeted production profile of 120,000 tonnes of spodumene concentrate per annum,” Aylward says.
“Processing of ore material was then halted while the operation focussed on the export of finished product and resumption of ore mining from the open-pit mine ahead of full processing resumption this week.”
Aylward adds that Kodal intends to conduct work at the Boumou prospect, including drilling, metallurgical testing, and geotechnical assessment work. Upon completion, a mine plan can be developed.
The company is also completing an updated environmental and social impact assessment, due to the enlargement of the prospect area.
“We expect to undertake this work throughout 2026 with the aim of completing the feasibility assessment and investment decision by the end of 2026,” the CEO says.
Meanwhile at the Ngoualana open-pit mine, operations are continuing following the wet season. De-watering of the pit has been ongoing and a sump has been dug within the lower-pit levels to improve the de-watering rate.
Permanent bore holes have been installed in two locations to manage the pit water levels going forward. The Bougouni operations plans to install a second de-watering pipe system to ensure that the mining operation is less impacted by the wet season in 2026.
Kodal Minerals is a West African lithium explorer, developer, and producer. It is the co-developer of the Bougouni Lithium Project in southern Mali, alongside its joint venture partner Hainan Mining.
The Bougouni Project, covering 350km2, is located in West Africa and is operated by Les Mines de Lithium Bougouni, a subsidiary of Kodal Mining UK.
Write to Aaliyah Rogan at Mining.com.au
Images: Kodal Minerals
