Kodal Minerals PLC (AIM:KOD) this week announced that it has been granted export permits for the Bougouni lithium project in Mali.
The authorisation covers 125,000 tonnes of spodumene concentrate.
Chief executive Bernard Aylward described it as “another step towards us being a true producer", and the company is now on the path to exporting and selling its product.
Aylward joined the Proactive studio to discuss latest developments. Here's what was said:
Proactive: Bernard, very good to speak with you, and great news this morning that you've been granted that export permits for the Bougouni lithium projects. So a significant milestone for the company.
Bernard Aylward: Yes, Stephen, thanks for having me back. And, very significant for us, it's another step towards us being a true producer, where we're exporting our product and selling it to the end user. We're very pleased. And again, I think, very strong reflection on our relationship with the government. Our team, were able to work closely with the Minister of Mines, the Minister of Finance, and all the bureaucracy.
We've had great support from the local community and the local governor and government. And, this reflects, you know, that positive attitude to our project and our team. And, we're very happy that it's been authorised. And, we're moving on to the next stage.
Proactive: The permit covers 125,000 tonnes of spodumene concentrate. How soon could exports begin once final administrative steps are completed?
Bernard Aylward: Look, we think within the month for sure. Stephen, we've got, we've had a lot of work already completed. You know, the contract with the transport has been signed. We're ready to start mobilizing trucks to site. We've got the infrastructure on site ready for the DNGM (Direction Nationale de la Géologie et des Mines), for the customs, for everything to be in place for us to export.
A few minor details to attend to, and we should be good to go. But, the team on site is on top of all of these things and working very hard to make sure it happens quickly.
Proactive: Can you explain how the Shanghai Metal Market Reference price will shape revenues under the offtake agreement?
Bernard Aylward: Yeah. So look, we've always been clear that the offtake agreement that we signed with Hainan Mining reflects a market price. And the index that we chose was the Shanghai Metal Market. It does seem to have a very clear reference, a large amount of material, a large knowledge base that reflects in its published price.
It's independent of Hainan, independent of us, and just operates separately and is a true reflection on current market price. We've already had this included in the offtake agreement that we signed with Hainan Mining, and it reflects the nature of that arm's length negotiation, making sure we achieve the best price possible for the product that we are delivering.
Proactive: And of course, today's news about that export license comes in the same week as the Africa Down Under conference in Perth. Are you seeing much interest in investment in mining in Africa there?
Bernard Aylward: Yeah. Look, it's really interesting Stephen, we’re here, there's a lot of attendance. We've got a lot of international visitors. A lot of representatives of lots of countries in Africa. And the interest is high. Obviously gold mining is front and center, given the price. But our project and other projects throughout Africa, lithium is still of strong interest.
And, we're getting a lot of interest from investors and people wanting to talk to us about not only this project, but next stages as well.
Proactive: Bernard, I hope you'll keep us updated on the next stages. Thank you very much for sharing the news.