UK's Kodal Plans to Expand Lithium Mining Footprint in West Africa

en.Wedoany.com Reported - On October 23, UK mining company Kodal Minerals announced plans to expand its West African lithium asset portfolio, aiming to further develop the Asamankese lithium project in Ghana on the basis of its existing production operations at the Bougouni lithium mine in Mali. The company recently signed a binding agreement with Ghana's GH Geo-Consult Limited, under which it plans to acquire up to an 80% interest in the project through phased investment over five years. Kodal has paid US$300,000 for an initial 10% equity stake and intends to use existing cash and mine operating cash flow to fund subsequent exploration.

The Asamankese project is located in Ghana's Eastern Region, approximately 75 km by road from the capital Accra, with a mining licence area of 156 square kilometres. Two key lithium-bearing pegmatite zones, Amantra and Nfranta, have been identified at the project. The Amantra pegmatite belt extends for more than 3 km, while multiple pegmatite bodies at Nfranta have a cumulative delineated strike length of more than 4 km. Kodal has collected 164 rock samples, of which 95 contain more than 1% lithium oxide, with a maximum of 2.49%; the highest historical sampling grade was 3.02% lithium oxide.

Under the phased earn-in agreement signed by both parties, Kodal is required in Phase 1 to incur minimum expenditure and stage payments totalling US$1.25 million within six months, after which its shareholding may increase to 30%. Phase 2 has a term of 24 months and requires completion of an initial mineral resource estimate, with cumulative commitments of US$4 million, allowing the shareholding to rise to 60%. Phase 3 has a term of 30 months and requires completion of a definitive feasibility study and satisfaction of a US$7.5 million stage investment condition, ultimately securing an 80% interest. Progression through each phase is at Kodal's discretion based on project progress.

Kodal has assembled a local technical team in Ghana to carry out geological mapping, rock sampling and surface geochemical surveys, and has selected a local drilling contractor, with the first diamond drilling planned to commence before the end of 2026. Drilling will prioritise investigation of the identified lithium-bearing pegmatite zones to obtain data on the continuity of mineralised bodies along depth and strike.

The Bougouni lithium mine developed by Kodal in Mali is co-invested by China's Hainan Mining and began production in 2025. The company disclosed on October 13 that the Bougouni lithium mine produced 27,234 dry tonnes of spodumene concentrate in the third quarter, with cumulative output of 80,429 dry tonnes in the first nine months of 2026, against full-year production guidance of 105,000 to 115,000 dry tonnes. The company is also advancing a Phase 2 flotation expansion study, planning to increase the mine's annual capacity to approximately 230,000 tonnes of spodumene concentrate, with related metallurgical testwork, updated environmental assessments and engineering contractor selection underway.