Mali and Ganfeng, a Chinese company, ink an agreement to run the Goulamina lithium mine

The West African nation’s economics ministry announced in a statement that Mali has inked a deal with Ganfeng Lithium (002460.SZ) of China, opening a new tab to operate the Goulamina lithium mine and increasing its share in the project in compliance with a new mining legislation.

The military-led government can now possess a larger stake in mining projects and recover what it claims is a significant shortfall in production revenue according to the mining code that was adopted last year.

Mali’s stake in the Goulamina project will rise from 20% to 35%, according per a May 16 statement from the ministry of economy that Reuters obtained on Friday.

“With this win-win agreement, which defends the vital interests of the Malian people, the State of Mali enters into a new partnership with the Chinese group Ganfeng Lithium Co for the development and operation of the Goulamina lithium project,” stated the statement.

It also stated that Ganfeng Lithium planned to establish a spodumene factory that would begin production by year’s end.

Alousseni Sanou, Mali’s minister of economics, stated earlier this week that the agreement might bring in between 110 and 115 billion CFA francs ($191.51 million) for Mali annually.

Earlier this month, Ganfeng Lithium paid $342.7 million to acquire Australia’s Leo Lithium (LLL.AX), opens new tab 40% share in the Goulamina mine.

At the time, Leo Lithium stated that selling the shareholding was in the best interests of the company’s shareholders due to the risks involved in operating in Mali and the impact of the new mining code.

$1 is equal to 600,5000 CFA francs.