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LONDON - Kodal Minerals Plc (AIM:LON:KOD) announced Monday it has signed a four-year off-take agreement for spodumene concentrate produced at its Bougouni Lithium Project in southern Mali.
The agreement between Les Mines de Lithium de Bougouni (LMLB), a subsidiary in which Kodal has a 49% stake, and Hainan Mining Co. Ltd grants Hainan exclusive rights to purchase 100% of the concentrate produced by the project’s dense media separation (DMS) processing plant.
Under the terms, pricing will be referenced to the Shanghai Metals Market published price for 6% spodumene concentrate, with adjustments based on grade and quality. The agreement includes a "take or pay" provision requiring LMLB to supply exclusively to Hainan, while Hainan must purchase an agreed annual quantity.
LMLB will receive 95% payment upon loading at the export port in West Africa, with the remaining 5% paid after delivery confirmation in Hainan, China. The parties expect minimum monthly shipments of 8,000 wet metric tonnes.
The agreement includes a floor price provision, which is suspended for the initial export period. Negotiations for a floor price to take effect from January 1, 2026, are ongoing.
According to the company, the DMS processing plant has already produced over 40,000 tonnes of spodumene concentrate ready for export. Kodal is working with the Mali government to finalize requirements for an export license to facilitate the first sale.
The first phase of the Bougouni project has a 1.4 million tonnes per year production line, expected to yield 100,000-120,000 tonnes of lithium concentrate annually with a concentration of more than 5.5% Li2O.
Bernard Aylward, CEO of Kodal Minerals, called the agreement "another important milestone" for the Bougouni project development.
This article is based on a press release statement from Kodal Minerals.
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