Kodal Minerals is set to become the first company listed on the London Stock Exchange to produce lithium in West Africa, it has announced.

In an update, Kodal revealed that its Bougouni Lithium Project in Mali had progressed significantly towards production, and was due to go online in Q4 2024. 

The project's progress has been made possible by a $117.75mn funding package from Hainan Mining Co., facilitating the development of Stage 1. This financial support also includes an additional $17.75mn investment in Kodal Minerals for exploration. Kodal holds a 49% ownership stake in the project, while Hainan holds the remaining 51%.

According to Kodal, the Bougouni project has made significant strides, with construction already in progress. A recent review confirmed the project's capital expenditure estimate of $65mn, as originally outlined in the 2020 feasibility study.

The construction of the processing plant and other key infrastructure is advancing, it said, with long-lead equipment deliveries arriving at the Port of Abidjan. The project remains on schedule to begin initial lithium production by the end of 2024.

"The past 12 months have been truly transformational for Kodal as the Bougouni Lithium Project has advanced in Mali and transitions from developer to producer, with Stage 1 first production firmly on track for Q4 2024, which would make Bougouni the first London-listed lithium producer," Kodal CEO Bernard Aylward said. 

"We are advancing the development of Bougouni firmly on schedule with the delivery of DMS units and equipment at the Port of Abidjan expected this week. I look forward to updating shareholders on progress in the months ahead and would like to express our utmost gratitude for your unrelenting support as we embark on the next crucial stage of our lithium mining journey."

The Bougouni project is located 170km south of Bamako, Mali’s capital, in a region already known for its mining operations, including Hummingbird’s Yanfolila mine and B2Gold’s Fekola mine. Kodal's progress positions it ahead of competitors like Australia’s Leo Lithium, which is also developing lithium projects in Mali. Ganfeng Lithium's recent acquisition of Leo Lithium’s remaining stake in the Goulamina lithium project further intensifies the competition, with initial spodumene production expected by the third quarter of 2024.