Following the first drill-and-blast in June, pure-play lithium explorer Leo Lithium’s Goulamina project, in Mali, has started producing ore.

This interview was conducted prior to Leo Lithium being granted a voluntary suspension from quotation on the Australian Securities Exchange from July 20.

Construction of the project – earmarked to be one of the largest spodumene mines in the world – has started and is halfway through the 27-month execution schedule.

The project will result in the construction of a spot mine concentrator with the capacity to produce 500 000 t/y of high-grade spodumene concentrate.

Spodumene is due to be produced late in the second quarter of 2024, says pure-play lithium explorer Leo Lithium MD Simon Hay.

The project is being funded through a 50:50 joint venture partnership with China-based lithium chemicals producer Ganfeng Group, whose funding has allowed for the project to meet its timeline.

Ganfeng has provided $130-million in equity, as well as a $14-million debt facility, which will be used to establish the mine.

The project costs $318-million to develop, from early-stage construction to first production.

Leo Lithium is raising A$106-million to ensure that the project is fully funded through to first production.

“It’s the world’s fourth-largest hard-rock lithium deposit globally. Our average grade is about 1.5% lithium. Compared to other projects that have 1.1% to 1% grade, we have a great advantage with our project,” enthuses Hay.

The concentrate will be exported to Ganfeng, in China, which will convert it into lithium chemicals such as lithium hydroxide and lithium carbonate.

Ganfeng has also assisted with procurement, providing its purchasing power and network to ensure that a tight schedule is met.

“We have acquired some equipment out of China through Ganfeng in a year or less, whereas if we had gone to the open market to get this equipment, it might have taken us up to two years.”

Ganfeng has tested the product from the project, expressing confidence that it will be able to convert the raw materials into a battery-grade, quality chemical, Hay adds.

The end-product will be spodumene concentrate with a grade of 6% lithium oxide.

Mine Progress
Conventional openpit mining methods involving drilling, blasting, loading and hauling will be used at Goulamina.

Currently, key activities on site are focused on construction, with Leo Lithium assigning 1 000 employees on site to establish the mine, build roads and construct the tailings dam, among other tasks.

In the second half of this year, larger teams will start working on the installation of steel work and major equipment while Leo Lithium will focus on electrical training in the first half of 2024.

The company aims to progress the project towards second-stage development, which would involve doubling the size of the mine; it is also considering a potential third stage of development, owing to the resource’s large size.

“We have the potential to build a really big mine that will contribute significant positive developments for Mali, the Malian people and the local communities,” Hay says.

Mining Contractor
Leo Lithium finalised its contract with mining services company Corica Mali for openpit mining services last month. The contract is valued at about A$520-million and encompasses six months of preproduction activities at Goulamina, followed by a fixed five-year term.

Key considerations for this contract included safety, experience, capability, equipment availability and cost.

“We found Corica to be successful in the tender on commercial as well as technical grounds. We’re really pleased to be working with them,” says Hay.

The company has also demonstrated its ability to adhere to Leo Lithium’s strict schedule.

Corica has a good reputation and is well connected, with good suppliers of mining equipment, which will benefit the project significantly, he concludes.