Bougouni JV partners Hainan Group
100% offtake secured with JV partner - Stage 0ne
Hainan Mining is a subsidiary of Fosun International.
Fosun - a US$5bn Hong Kong-listed conglomerate with total assets of US$12bn.
In November 2023, Hainan invested US$100m into the Bougouni Lithium Project for a 51% stake in the Bougouni asset as a joint venture partner.
This significant investment means that the Bougouni Lithium Project is fully funded for DMS Stage 1 (c.US$65m) and for additional expansion and resource base.
Hainan also acquired a 14.7% of Kodal Minerals plc via a US$17.75m investment to advance Kodal's portfolio and assets.
Bougouni's spodumene feedstock will supply Hainan's Lithium Hydroxide Plant in China.
The construction of which commenced in December 2022. Once first production commences in H12024, the plants is expected to have an annual output of 20kt of battery-grade lithium hydroxide.
Hainan Mining’s battery-grade Lithium Hydroxide Plant in Hainan Province
Offtake Agreement
In March 2024, Kodal announced the termination of the Right of First Refusal with Suay Chin for over 80% of the spodumene product produced at the Bougouni Lithium Project (Stage 1), part of its original investment agreement in Kodal in 2017. This allows Kodal and KMUK to enter into negotiations with its JV partner Hainan Group to finalise an offtake agreement to acquire 100% of the spodumene product produced at Bougouni.
Kodal and Hainan have agreed that any offtake agreement reached will be based on market prices for spodumene. The offtake agreement with Hainan will initially relate to spodumene production from the Stage 1 Dense Media Separation (DMS) processing plant.
