AIM-listed Kodal Minerals has begun spodumene concentrate production at its Bougouni lithium project in southern Mali, making it the West African country’s second lithium operation to launch in two months.

The milestone was achieved during commissioning of the project's dense media separation (DMS) plant, which produced an initial batch of spodumene concentrate with a lithium oxide (Li₂O) grade of 5.53%, meeting planned production targets.

The company aims to ramp up output to 10,000 tonnes per month in the coming weeks. CEO Bernard Aylward said that final commissioning and stress testing of the DMS plant were underway, with the first shipment of lithium concentrate to China’s Hainan Group expected by the end of the quarter.

“We are confident that this progress will continue into the commercial production phase, and our project team will continue to work towards our 10,000 tonnes per month target at Bougouni,” he said. “The operational focus over the coming weeks will be the finalisation of commissioning and stress testing of the DMS processing plant as we ramp up to achieve nameplate capacity and steady-state production.”

The $65mn Bougouni project has been developed within budget, with only minor optimisation tasks remaining. It is financed by Hainan Group, which holds a 51% stake.

Kodal Minerals has stockpiled over 350,000 tonnes of ore, grading an average of 1.17% Li₂O, and has now transitioned to 24/7 operations.

The explorer’s progress comes as Mali’s government tightens oversight of its mining sector. The country’s military junta, which owns a 35% stake in Bougouni, has introduced significant regulatory changes to boost state revenues and eliminate tax exemptions for mining firms—measures Kodal has agreed to comply with.