Firefinch and JV partner Ganfeng approve Goulamina Lithium Project in Mali

ASX-listed Firefinch Ltd has announced its arrival at a final investment decision (FID) for the Goulamina Lithium Project in Mali, in tandem with the board of Chinese joint venture (JV) partner Ganfeng Lithium.

The decision comes after Firefinch published a key update to the definitive feasibility study (DFS) for the spodumene project last month, which demonstrated a pre-tax NPV of US$2.96 billion and a post-tax IRR of 83%.

Following this robust update, the boards of both companies approved FID and agreed to waive the FID condition to the payment of the final $91 million upon the formation of the incorporated JV.

“Clearly the outcomes of the DFS update have been extremely compelling to the boards of both companies and it is a testimony to the project’s credentials that the partners have moved so quickly and collaboratively to commit to the development of Goulamina,” said Firefinch managing director Michael Anderson.

“We sincerely look forward to maintaining the positive momentum into the New Year as site-based activities increase,” he added. These include early stage engineering and drilling, along with various community and environmental works to fast track the development of the project.

Goulamina is expected to produce 506,000 tonnes of spodumene for the first 18 months of production, which would make it one of the largest lithium mines in the world.

Firefinch is in the process of demerging Goulamina into a new ASX-listed entity – Leo Lithium – as part of plans to separate its gold and lithium assets in Mali. The company will start pre-stripping activities at the newly defined Morila Super Pit in Q1, as it aims to ramp up production to over 100,000 ounces of gold in 2022.