Home » Kodal, Hainan Dispute Mali Project Tax Bill

Kodal, Hainan Dispute Mali Project Tax Bill

Kodal minerals, Hainan mining clash over $15 million tax bill in mali

by Feyisayo Ajayi
Kodal disputes Hainan’s claims over $15m Mali tax payment

Key Points


  • Kodal and Hainan contest $15 million Bougouni tax bill.

  • Mali’s updated mining code increases the state’s stake to 35%.

  • Kodal shares drop 19% amid tax dispute.


Kodal Minerals PLC and its joint venture partner, China’s Hainan Mining Co., are in a dispute over who should pay a $15 million tax bill to the Malian government related to their Bougouni lithium project in southern Mali. 

The disagreement follows Mali’s updated mining code, which now requires foreign mining operations to allocate a greater share of ownership to the state.

Mali increases stake in Bougouni lithium project

The most recent changes saw Mali’s stake in Bougouni increase to 35 percent, with Kodal and Hainan jointly holding the remaining 65 percent. 

The Bougouni lithium project, approximately 170 kilometers south of Bamako, is positioned to become a key producer of spodumene concentrate for lithium batteries, with initial production slated for early 2025.  The tax dispute centers around Hainan’s $117.5 million funding commitment for Bougouni.

Hainan claims Kodal should cover the $15 million tax bill, while Kodal asserts the liability belongs to Kodal Mining UK Limited (KMUK), its Malian subsidiary, which is 51 percent owned by Hainan.
Kodal maintains that the agreements with Hainan clearly outline that KMUK, rather than Kodal itself, bears the tax responsibility.

Shares fall on dispute news

News of the tax issue sent Kodal’s shares down by 19 percent to 0.32 pence per share, wiping out nearly a quarter of the company’s market value. As of Tuesday, Kodal’s market capitalization stood at around £67.73 million ($88 million).

Bougouni, which could produce up to 125,000 tonnes of spodumene concentrate annually, is part of Mali’s drive to expand its mining sector and harness more local benefits from its natural resources.  Industry analysts suggest the tax dispute, if unresolved, could impact project timelines and potentially strain the Kodal-Hainan partnership.

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