Kodal Minerals says that the new law in Mali that grants the government a larger stake in the country's mining assets will not affect the company's lithium project.
The law was signed into effect on August 29 by Mali's military leader, Assimi Goita, and increases the permitted stake for the government to 20% while reserving 5% for "national investors."
Authorities had previously stated that the Loulo-Gounkoto and Fekola assets of Barrick Gold and B2Gold, which have dominated the country's mining industry for decades, will be exempt from the new legislation.
Kodal said the Mali National Directorate of Geology and Mines confirmed that the company's license to mine the Bougouni lithium project will be "administered in accordance" with the terms of the previous law.
Kodal is competing with Leo Lithium Ltd. of Australia to develop Mali's first lithium mine.
Kodal was granted permission to operate in 2021, while Leo Lithium was granted permission to develop the Goulamina asset in August 2019.
The demand for lithium has sparked a rush to secure reserves due to its importance in batteries.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
