(Bloomberg) -- China’s Ganfeng Lithium Group Co. plans to pay about $343 million to buy out its partner in a lithium mine being developed in Mali.

The board of the Chinese lithium mining and processing giant approved the company’s proposal to acquire 40% of the Goulamina project from Australia’s Leo Lithium Ltd. for $342.7 million, according to a statement Tuesday. Ganfeng has also completed a previous agreement announced in January to buy a 5% interest from Leo for $65 million.

Ganfeng and Leo are aiming to bring Goulamina into production this year, vying with London-based Kodal Minerals Plc to become the first operating lithium project in Mali. The country is already home to some of the largest gold mines in Africa run by companies including Barrick Gold Corp. and B2Gold Corp.

While Ganfeng’s profit dropped sharply in 2023 after lithium prices plunged more than 80%, it has vowed to continue acquiring global reserves of the key battery metal and boosting production capacity in anticipation of strong demand growth in coming years. The company has overseas lithium resources in Argentina, Australia and Mexico, as well as mining and manufacturing operations in China.

The asset is one of the largest resources of lithium-bearing spodumene under development at a time when demand for the battery metal is surging.

Read more: Top China Lithium Firms Look Past Profit Slump and Vow Expansion

Once the purchase is finalized, Ganfeng will own all of Goulamina. The Chinese firm will also pay Mali’s government $60 million on behalf of Leo to settle a dispute between the West African nation and the Australian company, according to a statement on Wednesday by Leo’s biggest shareholder, Firefinch Ltd. In turn, the country’s authorities have agreed to issue a full mining license for the lithium project, according to the statement.  

Leo will receive a fee equivalent to 1.5% of the Goulamina mine’s gross revenue for 20 years, the company said on Wednesday.

Firefinch — which spun out Leo two years ago and will contribute A$11.5 million ($7.6 million) to the settlement — has been locked in a dispute with the Malian state over its operation of the Morila gold mine, which it acquired from Barrick and AngloGold Ashanti Ltd. in 2020. 

Before the resolution, the government had “proceeded on the mistaken view that Firefinch and Leo were one and the same company,” Firefinch said.

(Updates with details. An earlier version corrected the description of Kodal Minerals Plc in the third paragraph.)

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