Kodal Minerals PLC (AIM:KOD) told investors that it has started arbitration proceedings over a dispute tied to a US$15 million payment to the Government of Mali, after negotiations with its joint-venture partner failed to settle an indemnity claim.
The AIM-listed West African lithium producer said Kodal Mining UK (KMUK) is seeking indemnification in respect of the payment, which was first disclosed in November 2024. KMUK is the holding company for the Bougouni Lithium Project and is owned 51% by Hainan Mining Co. Ltd and 49% by Kodal.
Kodal said it filed its response to KMUK’s notice yesterday, setting out the view that the US$15 million paid to the Malian government, linked to arrangements around the Bougouni mining licence transfer and the project’s transition to Mali’s 2023 Mining Code, “is not a liability for tax to be indemnified” under the Hainan funding transaction announced in January 2023.
The company added that it is considering the potential for associated claims or counterclaims, and said it will keep shareholders informed as the arbitration progresses.