Firefinch, Ganfeng approve Goulamina lithium project's final investment decision

The boards of Firefinch Ltd. and Ganfeng Lithium Co. Ltd. approved a final investment decision for the Goulamina lithium project in Mali, according to a Jan. 4 statement.

A December 2021 definitive feasibility study update for the Goulamina project outlined a posttax net present value, discounted at 8%, of about A$4.2 billion, with an internal rate of return of 83% and a payback period of 1.5 years.

Following the definitive feasibility study update, the capital cost for the 2.3-million-tonne-per-year stage 1 operation increased to US$255 million from US$194 million, partly due to incremental capital associated with providing the flexibility to increase to a 4.0-Mt/y stage 2 operation. Ganfeng agreed to either provide US$40 million or arrange up to US$120 million in third-party debt for additional funding.

Firefinch and Ganfeng agreed to waive the final investment condition to the payment of the final US$91 million on the formation of a joint venture on Goulamina.

The transfer of the project exploitation license to a single purpose Malian subsidiary, the final condition to form the Goulamina joint venture, is expected in early 2022.