Ganfeng seeks full control of lithium mine in Mali

The board of the Chinese lithium mining and processing giant approved the company’s proposal to acquire 40% of the Goulamina project from Australia’s Leo Lithium Ltd. for $342.7 million, according to a statement Tuesday. Ganfeng had agreed in January to buy a 5% interest from Leo for $65 million.

Ganfeng and Leo are aiming to bring Goulamina into production this year, vying with Australian firm Kodal Minerals to become the first operating lithium project in Mali. The country is already home to some of the largest gold mines in Africa run by companies including Barrick Gold Corp. and B2Gold Corp.

While Ganfeng’s profit dropped sharply in 2023 after lithium prices plunged more than 80%, it has vowed to continue acquiring global reserves of the key battery metal and boosting production capacity in anticipation of strong demand growth in coming years. The company has overseas lithium resources in Argentina, Australia and Mexico, as well as mining and manufacturing operations in China.

The Ganfeng deal requires the approval of Leo’s shareholders and regulatory agencies, according to the statement to the Shenzhen Stock Exchange. Once the two stake purchases are approved, the company would own all of Goulamina.