Mali lithium project targets 16 year mine life

Africa's largest lithium development project has declared its maiden ore reserve which is expected to support an initial mine life of 16 years.

The ore reserve of 31.2mn t grading 1.56pc lithium oxide at Perth-based Birimian's Goulamina project in Mali, West Africa, is estimated to be able to support production of 362,000 t/yr of lithium concentrate, or 53,704 t/yr of lithium carbonate equivalent (LCE).

An updated pre-feasibility study indicates that the project can produce 5.7mn t of concentrate over 16 years through the processing of 2mn t/yr of ore.

The updated study shows that concentrate can be produced at an average cost of $281/t fob the port of Abidjan in Cote d'Ivoire, making it one of the world's lowest-cost hard rock lithium producers.

The study is based on a long-term lithium concentrate price of $666/t. Capital expenditure for the project is estimated at $147mn. Project net present value is $690mn with average earnings before interest, tax, amortisation and depreciation of $128mn/yr.

"Our ability to satisfy the long-term requirements of strategic offtake partners is clearly demonstrated," chief executive Greg Walker said, adding that there is potential to increase life of mine output by accessing inferred resources within the overall mineral resource of 103mn t.

A definitive feasibility study will now be undertaken to advance the project.

The Goulamina project has overtaken Prospect Resources' Arcadia project in Zimbabwe as Africa's largest lithium development project.