According to Bloomberg, Leo Lithium, an Australian mining company, said Mali has suspended operations of the unrefined lithium mine at the Goulamina project.
The Goulamina lithium mine is jointly developed by Leo Lithium and Ganfeng Lithium, 50% owned by Ganfeng Lithium, 40% owned by Leo Lithium and 10% owned by the Malian government, and is expected to start production in the second quarter of 2024.
Goulamina will be the first project in Mali to produce lithium. At a time when demand for battery metal lithium is surging, Goulamina is one of the largest resources of lithium-containing spodumene being developed.
According to a filing to the Australian Securities Exchange, Leo Lithium has immediately stopped crushing directly transported ore and talks with Mali's Ministry of Mines are ongoing.
Leo Lithium plunged more than 50 per cent on Monday, its first trading day since it was suspended in mid-July.
Leo Lithium said the suspension would not delay "any aspect of the project" and that production of the first spodumene concentrate remained on schedule for the second quarter of 2024. "Mining is continuing as previously planned, and the ore recovered is being stored."
Mali is home to some of Africa's largest gold mines, owned by Barrick Gold and B2Gold Corp. And other companies operate.
In a statement Monday, Leo Lithium said it received a letter from Mali's mining ministry on July 17 about direct ore transport, the status of the government's 10% stake and the overall progress of the project.
Mali has also set up a committee to review the projects.
"No reason was given other than the DSO was not included in our initial submission," Leo Lithium chief executive Simon Hay said in a conference call on Monday.
"The mining minister who made this decision was appointed in early July and the previous mining minister was very supportive of the DSO."
"Leo Lithium had planned to export up to 139,000 tonnes of unprocessed ore and start shipping concentrate next year."
Leo Lithium said it had provided preliminary documents for the transfer of the 10 per cent stake that the country is legally entitled to, with the Malian government having the option to subscribe for a further 10 per cent at market value.
