MALI has signed a landmark agreement with China’s Ganfeng Lithium to operate the Goulamina lithium mine, increasing its stake in the project in line with a new mining code. This code, adopted last year, allows the military-led government to boost its ownership in mining ventures and recover significant revenue shortfalls from production.
According to a statement from Mali’s economy ministry dated May 16, the country’s share in the Goulamina project will rise from 20 percent to 35 percent. ‘With this win-win agreement, which defends the vital interests of the Malian people, the State of Mali enters into a new partnership with the Chinese group Ganfeng Lithium Co for the development and operation of the Goulamina lithium project,’ the statement declared.
The agreement includes the establishment of a spodumene plant by Ganfeng Lithium, expected to commence production by the end of the year. This move is anticipated to significantly bolster Mali’s lithium output and economic gains.
Mali’s Economy Minister, Alousseni Sanou, highlighted the financial benefits of the deal, stating, ‘This agreement could bring Mali between 110 billion and 115 billion CFA francs ($191.51 million) per year.’
Earlier this month, Ganfeng Lithium acquired a 40 percent stake in the Goulamina mine from Australia’s Leo Lithium for $342.7 million. Leo Lithium cited the risks of operating in Mali and the implications of the new mining code as key reasons for the sale, emphasising that it was in the best interests of its shareholders.
The revised mining code is part of Mali’s broader strategy to enhance state revenues and assert greater control over its natural resources, aiming for a sustainable and mutually beneficial exploitation of its mineral wealth.
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