The Mali Government has signed an agreement with Chinese company Ganfeng Lithium, granting it operational rights to the Goulamina lithium mine, reported Reuters, citing the West African country's economy ministry.

This move aligns with Mali's revised mining code, which aims to enhance state revenue from mining projects.

Under the new terms, Mali's stake in the Goulamina project will increase from 20% to 35%, as per the economy ministry's statement seen by the news agency.

The statement reads: “With this win-win agreement, which defends the vital interests of the Malian people, the State of Mali enters into a new partnership with the Chinese group Ganfeng Lithium Co for the development and operation of the Goulamina lithium project.”

The agreement follows the country's adoption of a new mining code last year, designed to bolster government ownership and address perceived revenue deficits from mining operations.

Ganfeng Lithium has committed to establishing a spodumene processing facility, with production slated to commence by the end of the current year. This development is expected to significantly contribute to Mali's economy.

Last week, Mali Economy Minister Alousseni Sanou said that the deal is estimated to bring in annual revenues of CFA Fr110bn–115bn ($191.51m) for Mali.

Earlier this month, Ganfeng Lithium agreed to acquire a 40% interest in the Goulamina mine from Australia's Leo Lithium for $342.7m.

Leo Lithium stated that the security risks of operating in Mali and the implications of the new mining code, which allows the government a greater share of new projects, made the sale the best decision for its shareholders.

The Goulamina project includes 100km² of land holding in the Bougouni region of southern Mali. The land holding includes the Goulamina mineral deposit.