Kodal Minerals targets lithium exports as Bougouni nears commercial output

Kodal Minerals plc, the mineral exploration and development firm listed on the London Stock Exchange, has edged significantly closer to achieving commercial-scale lithium production at its flagship Bougouni Lithium Project in southern Mali. Having produced over 11,000 tonnes of spodumene concentrate, the project is now in the final stages of its construction and commissioning phase. The company has confirmed that its Dense Media Separation (DMS) processing plant is consistently operational and generating spodumene concentrate with lithium oxide grades exceeding 5.6%, setting the stage for imminent exports. However, the green light for these exports hinges on a single, albeit critical, regulatory milestone—the final approval of the mining licence transfer by Mali’s President, Assimi Goïta.

This project update marks a pivotal moment not just for Kodal Minerals, but for the broader lithium supply chain, which continues to experience soaring demand from electric vehicle manufacturers and energy storage companies worldwide. As the lithium industry pushes deeper into Africa in search of high-grade, underdeveloped resources, the Bougouni Lithium Project is emerging as a key asset in Mali’s growing mining portfolio.

What’s the current status of the Bougouni Lithium Project?

Located in a region increasingly recognized for its lithium-rich pegmatites, the Bougouni Lithium Project has reached an advanced stage of development. Kodal Minerals, through its 49% stake in Kodal Mining (UK) Ltd, the operating company behind the project, has confirmed that the DMS processing plant achieved initial production in February 2025 and has since ramped up its output. By the last week of March, the facility had processed 13,400 tonnes of ore and produced 1,920 tonnes of spodumene concentrate, with a lithium oxide content of 5.63%.

The ramp-up phase is nearing commercial output levels, though the nameplate capacity has not yet been reached on a consistent basis. Improvements and operational modifications to the DMS facility are underway, aimed at boosting throughput and achieving the project’s planned monthly output of 11,000 tonnes of concentrate. A substantial stockpile of lithium-rich material is now being accumulated at the site, awaiting clearance for export.

As of early April, a stockpile of 220,000 tonnes of run-of-mine mineralised pegmatite ore is also ready for processing, suggesting that the project is well-resourced for sustained operations once exports begin. Site construction, including drainage infrastructure and camp facilities, is nearly complete, and a new access road linking the site to the nearby village of Ngoualana has garnered support from local communities.

Why is the mining licence transfer so critical to Kodal’s next phase?

Despite the operational milestones achieved so far, the ability to export spodumene concentrate and move into the revenue-generating phase is contingent on the completion of a formal mining licence transfer. The project’s existing licence is held by Future Minerals SARL, and the transfer to the newly established, Mali-registered entity Les Mines de Lithium de Bougouni SA (LMLB) is underway. Kodal Minerals has stated that all required structural changes and compliance formalities—including the integration of the Mali government’s shareholding—have been approved by the country’s Ministers of Mining and Finance.

The final step involves presidential approval. The licence transfer application has been submitted to Mali’s Council of Ministers and awaits the signature of President Assimi Goïta. The delay has triggered a formal request by Kodal Mining (UK) Ltd to postpone a US$7.5 million payment due to the State of Mali under the terms of a previously agreed Memorandum of Understanding. The government has acknowledged the request and a response is expected shortly.

To support this process and reaffirm the project’s value to Mali, Kodal recently hosted a high-level site visit from the Department of Mines and two presidential advisers. During the tour, the company’s commitment to local employment was emphasized, with data showing that 95.7% of the site’s 555-strong workforce are Malian nationals, including 344 workers recruited from surrounding communities.

How does Bougouni fit into the global lithium market?

The progress at the Bougouni Lithium Project comes at a time when the global lithium market is increasingly focused on diversifying supply chains and reducing dependence on dominant players such as Australia and China. Africa is seen as a key region in this strategic shift, with Mali, Zimbabwe, Namibia, and the Democratic Republic of Congo all sitting on potentially rich lithium reserves.

Kodal Minerals’ production of spodumene concentrate in Mali adds a new and potentially significant node to this evolving landscape. The company has indicated that it plans to ship its lithium output through the Port of Abidjan in Côte d’Ivoire before transporting it to China, where lithium conversion and battery-grade refining would take place. This logistics route offers an important advantage—relatively short overland distances to a functional export port—making the project more viable from a cost and efficiency standpoint.

Global demand for spodumene, the most common lithium-bearing mineral used in battery manufacturing, has remained robust despite short-term pricing fluctuations. With the market expected to tighten again by 2026 due to delayed capacity additions elsewhere, Kodal’s entrance into commercial production could be well-timed to benefit from improved pricing and long-term offtake agreements.

What does the market think of Kodal Minerals?

Investor sentiment surrounding Kodal Minerals plc (LON: KOD) has been notably positive in the wake of the company’s recent project updates. On April 1, 2025, shares of the company rose by 5.7%, closing at GBX 0.407. This price movement reflected market enthusiasm for the company’s transition from a development-stage explorer to a near-term lithium producer.

According to data from MarketBeat, analysts covering the stock currently rate Kodal Minerals as a “Buy,” with an average 12-month price target of GBX 1.23. This represents an estimated upside of over 200% from current levels. Analysts attribute the bullish outlook to the company’s unique positioning as a first-mover in West African lithium, a robust resource base, and the strategic timing of its production launch amid rising global demand for battery metals.

However, the consensus also cautions that the finalisation of the mining licence transfer remains a critical short-term risk factor. Should the transfer be delayed significantly beyond current expectations, it could impact investor confidence and stall revenue generation. On the other hand, a swift sign-off by Mali’s presidency would likely act as a strong catalyst for further share price appreciation.

Can Kodal sustain long-term growth beyond Bougouni?

The company’s broader strategy extends beyond simply bringing the Bougouni site into production. Kodal Minerals has previously explored additional lithium and gold prospects across Mali and Côte d’Ivoire, signalling a longer-term ambition to become a multi-asset West African operator. Success at Bougouni could serve as a platform for further investment, exploration, and possibly future joint ventures or asset sales.

The geopolitical risks of operating in Mali remain a factor, particularly given the evolving security and political environment. However, Kodal’s focus on local employment, regulatory compliance, and infrastructure development has contributed to a positive working relationship with government stakeholders so far.

As the company awaits the final decision from Mali’s presidency, the spotlight remains fixed on Kodal Minerals. The delivery of first exports, once authorised, will not only transform the company’s financial profile but also mark a significant moment for Mali’s place in the global lithium supply network. Investors and industry observers alike are watching closely, recognising the Bougouni Lithium Project as a potentially transformative asset in the race to electrify the global economy.