Aim-listed Kodal Minerals has reported that, following recent security incidents and unrest in parts of Mali, the Bougoini lithium project remains unaffected, with operations continuing as usual.

In a May 5 statement to shareholders, CEO Bernard Aylward explains that, over the past couple of weeks, the safety and security of staff at Bougouni has been a priority, adding that the township of Bougouni has remained unaffected by recent security incidents.

“The project team, mining contractors and support teams continue to be well supported by security services and local government officials and their safety remains the utmost priority.

“Operations at Bougouni have continued, with the site continuing to receive deliveries, including fuel and the necessary spare parts needed on site. Furthermore, the export of spodumene concentrate to the Port of San Pedro remains unaffected and on schedule,” says Aylward.

Meanwhile, Kodal notes that final payment for the second shipment of spodumene concentrate to Hainan Mining has been received and that Les Mines de Lithium de Bougouni (LMLB) has been paid a total amount of $27.6-million for the shipment following the confirmation of grade, tonnage and moisture content, among other criteria.

The second shipment delivered about 19 738 dry metric tonnes (dmt) of spodumene concentrate and a calculated spodumene concentrate 6% lithium dioxide equivalent average price of $1 681.3/t of concentrate.

The third shipment of about 20 480 dmt of spodumene concentrate, which departed from the Port of San Pedro, Côte d'Ivoire, on April 12, is currently in transit to Hainan.

The company explains that LMLB has received an interim payment of $34.4-million dollars representing 95% of the estimated value of the cargo including adjustment for grade and shipping and insurance costs.

The third shipment is expected to arrive in Hainan in July, triggering the calculation process for the final payment for the shipment.

Kodal says the project continues to mine and process lithium mineralisation and is currently transporting spodumene concentrate to the Port of San Pedro in preparation for the next shipment.

Aylward says the receipt of the final payment for the second shipment and the interim payment for the third shipment highlights the strengthening spodumene concentrate price and the growing demand from the lithium market.

“The operation has now received revenue of over approximately $89-million from its first three shipments, and we expect shipments to continue at regular intervals targeting cargoes of up to 20 000 dmt,” he notes.

Kodal says it maintains its involvement and interest in Bougouni through its 49% shareholding in Kodal Mining UK (KMUK), in partnership with Hainan Mining, which, as the 51% shareholder, has ultimate control.

KMUK holds a 65% shareholding of LMLB, which owns the project in partnership with the Mali government, and KMUK provides the management oversight and operational control of mining activities at the project.