GANFENG Lithium Co., one of the world’s biggest lithium producers, will pay US$130 million for a stake in the Goulamina hard-rock mine in Mali and take at least half of its first-phase output.

The deal marks Ganfeng’s first investment in lithium mining in Africa as it seeks to boost production for the commodity used in electric-vehicle batteries.

Ganfeng, which has projects in China, Mexico, Australia, Argentina and Ireland, will take a 50 percent stake of a special purpose vehicle set up by Goulamina’s current license holder, Australia-listed Firefinch Ltd., which will fully own operating company Lithium du Mali SA.

Mali’s government has the right to take 10 percent of the equity free of charge and pay in cash for up to 10 percent more.

Firefinch said Goulamina, which lies about 150 kiometers by road south of Mali’s capital Bamako, is “one of the world’s highest quality lithium assets.”

A feasibility study was completed last year but it was not immediately clear when production would start.

The project has 108.5 million tons of resources and high-grade spodumene concentrate, Firefinch said in a presentation last month.

Spodumene is a lithium-rich mineral that can be converted into battery-grade lihium products.

Ganfeng said it would acquire offtake rights to 50 percent of first-phase annual production capacity of 455,000 tons of spodumene concentrate but may obtain 100 percent if it helps Lithium du Mali raise debt or gives financial assistance.

Ganfeng might help raise at least US$64 million from banks or other financial institutions for development and construction of the mine, and might also opt to provide up to US$40 million in direct financial assistance. (SD-Agencies)