Kodal Minerals (AIM:KOD) aims to build a broader West African lithium portfolio beyond its Bougouni mine in Mali, drawing on nearly two decades of operating experience in the region, CEO Bernard Aylward said.
The London-listed miner’s Bougouni lithium mine, a joint venture with China’s Hainan Mining (SSE:601969), entered production last year.
Kodal also has gold exploration assets in Mali and Ivory Coast and this week agreed to earn up to an 80% stake in Ghana’s Asamankese lithium project, extending its regional presence.
West Africa diversifies into critical minerals
West Africa, one of the world’s leading gold-producing regions, is increasingly targeting investment in critical minerals such as lithium as governments seek to diversify their mining sectors and increase returns from mining, sometimes rattling investors.
Aylward told Reuters this week that West Africa remains an attractive mining destination and the company was deliberately focusing on the region where it had built expertise over the past 15–18 years.
“We understand the legislation, we understand how to work with local communities and authorities, and we believe the geological potential is very strong,” he said.
The company believes the Asamankese project could emerge as a significant discovery after early exploration results showed similarities to the initial stages of development at Bougouni.
Kodal plans to fund exploration from existing cash resources and mine cash flow rather than raising fresh equity, Aylward said.
Recovering lithium prices have improved the outlook for new mine development after a downturn that slowed projects across the sector, including Ghana’s flagship Ewoyaa project.
Aylward said growing demand from electric vehicles, energy storage, and consumer electronics continued to support a strong long-term outlook for lithium and new supply investments.
“We believe … that new supply brought to market will be rewarded,” he said.
(Reporting by Maxwell Akalaare Adombila; Editing by Mark Potter)
Main image: Kodal Minerals
