Zimbabwe’s Kuvimba Secures $310 Million Deal for Lithium Mining

Zimbabwe’s state-owned Kuvimba Mining House has announced a significant $310 million agreement with a consortium of British and Chinese investors for the construction of a lithium concentrator. This announcement, made on Thursday, marks a major development in Zimbabwe’s mining sector. The deal includes a binding build, operate, and transfer (BOT) agreement for establishing a 3 million metric ton per year ore processing plant at the Sandawana mine. This site, previously operated by Rio Tinto, was used for emerald mining for three decades until 1993.

The new lithium concentrator will play a crucial role in the initial stage of lithium processing. This stage involves crushing and leaching ore to produce saleable concentrates, which are then refined into lithium carbonate or lithium hydroxide—key components for battery production. Currently, Zimbabwe does not refine lithium domestically but exports concentrates to China, where they are further processed.

The consortium, comprising prominent British and Chinese companies in the global lithium market, has not been specifically named by Kuvimba. However, the consortium's participation underscores the significant international interest in Zimbabwe’s lithium resources. The BOT agreement with Kuvimba will remain in effect for six years, after which the arrangement will end. The lithium concentrator is expected to be operational within 18 months and will produce an annual output of 600,000 metric tons of lithium concentrate.

This development is part of a broader trend in Zimbabwe, which has emerged as Africa’s leading lithium producer. The country’s lithium sector has attracted over $1 billion in investments since 2021, primarily from Chinese battery metal firms. Notable Chinese companies involved in Zimbabwean lithium mining include Zhejiang Huayou Cobalt, Sinomine Resource Group, Chengxin Lithium Group, Canmax Technologies, and Yahua Group. These investments highlight Zimbabwe's growing importance in the global lithium market, driven by the increasing demand for lithium in electric vehicle batteries and renewable energy storage solutions.

Kuvimba’s latest project reflects its ongoing commitment to advancing Zimbabwe’s mining industry and enhancing its role in the global supply chain for critical minerals. By partnering with leading international investors, Kuvimba aims to boost the country’s lithium processing capabilities and create significant economic benefits. The new concentrator will not only add value to Zimbabwe’s lithium resources but also contribute to the local economy through job creation and technological advancements.

As Zimbabwe continues to capitalize on its rich mineral resources, the development of the lithium concentrator represents a pivotal step in strengthening its position as a key player in the global lithium market. The successful execution of this project will be crucial for meeting the growing global demand for lithium and supporting the transition to sustainable energy technologies.