APA-Bamako (Mali) UK-based mining company “Kodal Minerals” has recently completed a $117.75 million fundraising round to support its Bougouni lithium project in Mali.
Provided by the Chinese mining company Hainan Mining and its British subsidiary Xinmao Investment, the financing was first announced in January 2023.
It will involve project development and production start-up, as well as support for ongoing exploration and development programs for project expansion. Chinese mining company Hainan has invested $100 million in Kodal’s British unit, Kodal Mining UK (KMUK). This, before subscribing $17.75 million to Kodal’s capital, at 0.5 pence per share.
As a result, Hainan now owns 14.72% of Kodal, as well as a 51 percent stake in KMUK. The Bougouni project is located 180 km south of Bamako. It covers an area of 350 square kilometres and has the potential to host several open-pit lithium mining operations.
Kodal acquired the project at the end of 2016, and its mining permit was obtained in the fourth quarter of 2021 prior to the mine development. The company is now planning the construction phase of the project.
Investors including Rosatom attracted to the project
Kodal is currently working to develop the project’s mining operations in southern Mali. Already, several investors and purchasing partners looking for a secure, long-term supply of product are attracted to the project. Some even mention the name of Rosatom, a Russian state-owned company specializing in the nuclear power sector. Rosatom has promised to build nuclear power plants in Mali.
According to a report by the US Geological Survey, an American government agency dedicated to earth sciences, Mali has significant lithium capacity, enabling it to contribute to global production. This resource is used in thermonuclear reactions, metallurgy, electrical engineering, ceramics and the chemical industry. Lithium compounds are used in the manufacture of glass, enamels and medicine. However, its biggest application today is in lithium-ion batteries. These are used in smartphones, tablets, laptops, power tools, electric cars and other devices. The very spread of electric cars has led to a rapid increase in lithium mining. For this, it has already earned the name “white oil.”
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