- Kodal plans a wider West African lithium portfolio beyond Mali.
- It agreed to earn up to 80% of Ghana’s Asamankese project.
- CEO says early results resemble the start of Bougouni.
- Exploration to be funded from cash and mine cash flow.
KODAL Minerals plans to build a broader lithium portfolio across West Africa beyond its Bougouni mine in Mali, Chief Executive Bernard Aylward told Reuters.
London-listed Kodal began producing lithium at Bougouni last year in a joint venture with China’s Hainan Mining. This week it agreed to earn up to 80% of the Asamankese lithium project in Ghana.
Engineering News reported that the project sits in a joint venture with Ghanaian consultancy GH Geo-Consult, which initially holds 90%, with Kodal holding 10%. Kodal has appointed a country manager and is hiring a Ghana-based geology team.
Aylward said early exploration results at Asamankese resemble the initial stages of Bougouni and could point to a significant discovery. Exploration will be funded from cash and mine cash flow rather than new equity, he said.
He said West Africa remains an attractive destination and that Kodal is deliberately focusing on a region where it has built expertise over the past 15 to 18 years. The company also holds gold exploration ground in Mali and Ivory Coast.
West Africa, one of the world’s leading gold-producing regions, is increasingly targeting critical minerals such as lithium as governments seek to diversify their mining sectors and raise returns, Reuters reported. The shift has at times rattled investors.
A recovery in lithium prices has improved the outlook for new mines after a slump that delayed projects including Ghana’s Ewoyaa. Aylward said long-term demand from electric vehicles, energy storage and consumer electronics supports the outlook.
Zimbabwe, Africa’s largest lithium producer, suspended exports of raw lithium concentrates in February as part of a push to process more of the metal at home.
