Zimbabwe’s state-owned Kuvimba Mining House has struck a significant deal worth $310 million with a consortium of British and Chinese investors. The agreement, announced recently, will fund the construction of a state-of-the-art lithium concentrator at the Sandawana mine.
Kuvimba revealed that it has signed a binding build, operate, and transfer (BOT) agreement for this major project. The planned lithium concentrator will process 3 million metric tons of ore per year. This new plant is designed to enhance the efficiency of lithium extraction at Sandawana, a site previously known for emerald mining under Rio Tinto until 1993.
The lithium concentrator represents the initial stage in the processing of lithium ore. Its main function is to crush and leach the ore, producing saleable concentrates. These concentrates are then further refined into lithium carbonate or lithium hydroxide, essential components for batteries. Currently, Zimbabwe does not process lithium beyond the concentrate stage; instead, it exports these concentrates to China for advanced processing.
While Kuvimba did not disclose the names of the investors involved, it did confirm that they are prominent British and Chinese firms in the global lithium market. The agreement includes a build-operate-transfer arrangement, which will be in effect for six years. After this period, the ownership and operation of the plant will transition as per the terms of the deal.
The new plant is expected to commence operations within 18 months and will have an annual production capacity of 600,000 metric tons of lithium concentrate. This development underscores Zimbabwe’s growing prominence as a key player in the global lithium market.
Zimbabwe has emerged as Africa’s leading lithium producer, a critical mineral for electric vehicle batteries and renewable energy storage. Since 2021, the country has attracted over $1 billion in investments into lithium projects. This influx of capital has largely come from Chinese battery metal firms, highlighting the increasing international interest in Zimbabwe’s lithium resources.
Several Chinese companies are already active in Zimbabwe’s lithium sector. These include Zhejiang Huayou Cobalt, Sinomine Resource Group, Chengxin Lithium Group, Canmax Technologies, and Yahua Group. Their investments reflect a broader trend of global companies seeking to secure sources of lithium to meet the rising demand for electric vehicle batteries and other technologies reliant on this essential mineral.
Kuvimba’s deal marks another milestone in Zimbabwe’s expanding lithium industry. The new concentrator will play a crucial role in scaling up the country’s lithium production capacity. As the global demand for lithium continues to grow, Zimbabwe is positioning itself as a key player in the supply chain for this vital resource.
