Kodals Minerals (LON: KOD) announced Tuesday that its Bougouni project in southern Mali produced its first spodumene concentrate—a key step for the nation’s burgeoning lithium sector. The initial batch, registering 5.53% lithium oxide, met the company’s targets during the commissioning of its Dense Media Separation plant.
The facility is expected to ramp up to 10,000 tonnes per month in the coming weeks as the operator finalizes commissioning and conducts stress tests, according to Chief Executive Bernard Aylward. The first shipment of concentrate to China’s Hainan Group is scheduled for the quarter’s end.
Shares in Kodal rose nearly 5% to 0.42p in London, lifting the miner’s market capitalization to approximately £83 million. Construction costs have adhered to the estimated $65 million budget, with only minor optimization work remaining. The project is chiefly financed by Hainan Group, which holds a 51% stake. 
Analysts at Canaccord called the development a “key positive milestone” and noted that achieving nameplate capacity ahead of schedule while keeping expenses in check bodes well for cash flow.
Located 170 km south of Bamako in a region already home to operations such as Hummingbird Resources’ Yanfolila mine and B2Gold’s Fekola mine, Bougouni is jointly controlled by Kodal and Hainan (65%), with the Malian government retaining 35%. The company is now in the process of transferring its mining license to its Chinese partner—a move that has cleared initial approval by Mali’s Mines Department and awaits final confirmation in the form of a new mining decree from interim President Assimi Goïta.
This progress comes amid sweeping changes in Mali’s mining sector. The government’s recent overhaul of mining regulations, which increases the state’s share of revenues and removes tax exemptions, has unsettled investors including Barrick Gold, Resolute Mining, and B2Gold. Kodal’s advance, however, stands as a bright spot in a challenging regulatory landscape.
