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LONDON - Kodal Minerals PLC (AIM:LON:KOD), a mining exploration and development company, has announced the successful production of its first spodumene concentrate at the Bougouni Lithium Project in Southern Mali. The significant milestone was reached during the commissioning phase of the project’s Dense Media Separation (DMS) processing plant.
The initial production run yielded a spodumene concentrate with a lithium oxide (Li2O) grade of 5.53%, aligning with Kodal’s production profile expectations. Notably, this achievement came ahead of schedule and sets the stage for the plant to ramp up to its full capacity in the coming weeks.
The DMS processing plant, which has been under review to optimize the processing circuits, is now operating continuously as the company pushes towards its target of 10,000 tonnes per month. With construction costs remaining within the projected US$65 million budget, only minor optimization works are pending.
Mining activities at the Ngoualana deposit have been building a substantial run of mine (ROM) stockpile, currently standing at over 350,000 tonnes of ore with an average grade of 1.17% Li2O. This stockpile ensures that the ramp-up of production will not be constrained by ore availability.
The Bougouni project is funded through a US$117.5 million investment from the Hainan Group, which includes a US$100 million investment into Kodal Mining UK Limited. This partnership has facilitated the development of the project, with Kodal holding a 49% stake and the Hainan Group holding a 51% interest.
As the commissioning phase concludes, Kodal Minerals is focusing on finalizing the plant’s commissioning and stress testing to achieve steady-state production. The company anticipates confirming its first shipment of lithium spodumene concentrate to Hainan, China, by the end of March 2025.
The announcement also notes that the transfer of the mining license has been lodged and accepted by the Mali Mines Department, with the final stages of compliance nearing completion. The issuance of the new mining decree is pending the signature of the President of Mali.
Kodal Minerals’ CEO, Bernard Aylward, expressed gratitude to the team for their dedication and is confident that the project will continue to make progress as it transitions into the commercial production phase.
This news is based on a press release statement, and further information on the Bougouni Project can be found on the company’s website.
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