By Maxwell Akalaare Adombila

DAKAR (Reuters) -Regulatory hurdles in Mali have left British miner Kodal Minerals unable to export more than 20,000 metric tons of lithium concentrate, its chief executive Bernard Aylward told Reuters.

Kodal's blocked shipments come as global lithium production is already expected to drop this year - potentially by 228,000 tons - as miners curtail operations due to plummeting prices for the metal, used in electric vehicle batteries.

Kodal, which launched production in February, has agreed to sell its entire output to China's Hainan Mining, Aylward said.

"We're spending money to produce a product that we want to sell ... Our buyer actually wants to buy it, [but] we can't export," he said.

Spokespeople for Mali's mining and trade ministries did not respond to requests for comment.

Long a major gold producer, the West African nation is seeking to develop its significant lithium reserves at a time when its military government is also asserting more control over the mining sector in a bid to generate more revenues.

Malian authorities have arrested foreign executives and seized gold stocks as they negotiate with multinational gold miners.

In Kodal's case, Aylward said officials have been scrutinising a pricing mechanism to ensure the spodumene concentrate produced at the firm's Bougouni project is sold at prevailing market rates.

He said the company has been locked in negotiations for final approvals since last year and is now finalising its export permit in the hopes of sending its first shipment in mid-June.

"Other operations in Mali are also having delays in the export permits. It is not restricted to the Kodal team," he added.

China's Ganfeng Lithium, which operates Mali's only other lithium mine, did not respond to a request for comment.

(Reporting by Maxwell Akalaare Adombila; Editing by Portia Crowe, Robbie Corey-Boulet and Joe Bavier)