Hainan Mining (601969) outlined the next stage of its lithium strategy at its third-quarter results briefing, confirming a Phase 2 expansion at the Bougouni lithium mine in Mali and a parallel build-out of downstream lithium salt converting capacity, with cost control set as the boundary condition for all expansion decisions.

Phase 2 at Bougouni is planned at 200,000 to 300,000 tonnes per year of spodumene concentrate. The company aims to complete the feasibility study and permitting procedures by the end of 2026, break ground in 2027 and bring the project into production in 2028. Output from the expansion would support a further 20,000 to 25,000 tonnes of downstream lithium salt capacity.

The company is pursuing an equity lithium carbonate capacity target of 50,000 tonnes by 2030 through a dual approach of organic expansion and acquisitions, with outbound M&A focused on low-cost, high-quality upstream lithium assets in China and overseas.

On costs, Hainan Mining said conversion costs at its lithium hydroxide plant currently sit at just over RMB 20,000 per tonne and are targeted to fall below that level through technical upgrades that lift throughput and dilute fixed costs, repayment of loans from operating cash flow to reduce finance expenses, and lower auxiliary material costs. Spodumene production costs at Bougouni are around USD 650 per tonne, or roughly USD 800 per tonne including freight, with further room to decline as Phase 2 volumes ramp.

The company also reported that lithium salt output rose more than 24% quarter on quarter in the third quarter and sales rose more than 33%, with monthly output reaching a record 1,943 tonnes in September. Output for the first nine months totaled 13,600 tonnes, about 85% of the full-year target of 16,000 tonnes.

(Source: Xinhua Finance / Hainan Mining investor briefing)