Mali’s authorities can take 10% of the fairness freed from cost and pay in money for as much as 10% extra, the corporate stated.
Ganfeng’s transfer mirrors Zijin Mining and Citic’s, which last week secured 100% of the copper production from Ivanhoe Mines’ recently-launched Kamoa-Kakula mine within the Democratic Republic of Congo (DRC).
It additionally follows an analogous deal Ganfeng inked in December to purchase spodumene focus from the Manono mine within the DRC for an preliminary five-year interval. The corporate didn’t take an fairness stake in AVZ Minerals, the operation’s proprietor.
Goulamina’s present license holder, Australia’s Firefinch (ASX: FFX), stated in an update earlier this month the lithium undertaking was one of many world’s largest undeveloped deposits, with 108.5 million tonnes of sources and high-grade spodumene focus.
It additionally stated the undertaking, which lies about 150 km (93 miles) by highway south of Mali’s capital Bamako, had the potential to be one of many lowest price producers.
Firefinch has stated it intends to demerge Goulamina into a brand new ASX listed firm. Ganfeng’s funding might velocity up such plans.
Focusing on sizzling spots
Ganfeng has been strengthening its funding and improvement functionality within the lithium market over the previous 12 months. In early Might, the corporate announced the acquisition of lithium explorer and developer Bacanora Lithium (LON:BCN), turning into the only real proprietor of the Sonora undertaking in Mexico.
The mine is predicted to start manufacturing in 2023 and produce 35,000 tonnes of lithium per 12 months as soon as at full tilt.
The corporate can be exploring setting up a batteries plant in Argentina, the place is creating the Cauchari-Olaroz lithium brine undertaking.
Beijing introduced final 12 months a improvement plan for the so-called new power automobile (NEV) business in 2021-35. It’s concentrating on a 20% share of NEVs within the nation’s whole automobiles gross sales by 2025, which helps the demand for battery supplies in the long term.
A recent report by the International Energy Agency (IEA) recommends governments begin stockpiling battery metals, noting that lithium demand might improve 40-fold within the subsequent 20 years. IEA government director Fatih Birol stated this may turn into an “power safety” challenge. China dominates lithium processing, whereas mine provide largely comes from Chile and Australia.
