Kodal Minerals PLC (AIM:KOD)’s Bougouni Lithium Project in Southern Mali remains on track and fully funded through a US$100 million investment from the Hainan group, the company said in an update published on Wednesday.
Despite minor shipping delays due to the diversion of vessels to offload urgent humanitarian cargo in Freetown, Sierra Leone, the shipping of the dense media separation (DMS) processing plant and associated equipment is on schedule.
The first shipment, which includes structural steelwork, is en route to Abidjan port, and the second shipment, containing the remainder of the processing plant equipment, initial construction plant, spare parts, and site equipment, is also on its way.
Structural steelwork fabrication was completed in June, and civil construction works have progressed satisfactorily, with all major concrete footings for the DMS plant installed.
The civil contractor, Bambara Resources SARL, and its subcontractor, GZB Mali, part of the Gezhouba Group from China, have ensured that the site is fully prepared for the arrival of the processing plant.
Mining activities at the Ngoualana pit have commenced, with the removal of ‘free dig’ overburden materials.
Hard rock is expected to be reached by early September 2024, with the first blast scheduled for that time. The project remains on budget with a capital expenditure guidance of US$65 million.
Bernard Aylward, chief executive of Kodal Minerals, said: "The construction of the Bougouni Lithium Project continues to progress satisfactorily with the targeted first production before the end of 2024 remaining on schedule despite minor shipping delays that were outside of our control.
“The civil contractor has completed the installation of all major DMS plant footings, providing unfettered access for installation works to complete steelwork and platework erection activities."
In addition to technical progress, Kodal Minerals has actively engaged in environmental and social initiatives, including donating two tractors to the Kola-Sokoura and Ngoualana villages to support local agricultural productivity.