Zimbabwe’s state-owned Kuvimba Mining House has announced a significant development with a $310 million deal involving a consortium of British and Chinese investors. This deal, formalized on Thursday, is set to support the construction of a lithium concentrator at Kuvimba’s Sandawana mine.
The agreement, a binding Build, Operate, and Transfer (BOT) contract, involves the creation of a 3 million metric ton per year ore processing plant. The plant is expected to begin operations within 18 months and will initially focus on producing 600,000 metric tons of lithium concentrate annually. This concentrate will be an essential precursor in the lithium processing chain, where it is refined into lithium carbonate or lithium hydroxide, key components for electric vehicle batteries and energy storage.
Kuvimba did not disclose the names of the investors but described them as prominent British and Chinese firms in the global lithium market. The BOT arrangement will remain in effect for six years before transferring operational control.
Zimbabwe, a leading producer of lithium in Africa, has seen substantial investment in its lithium sector, exceeding $1 billion since 2021. This influx of capital has primarily come from Chinese battery metal companies, including Zhejiang Huayou Cobalt, Sinomine Resource Group, Chengxin Lithium Group, Canmax Technologies, and Yahua Group.
The new concentrator at Sandawana mine represents a significant step forward for Zimbabwe’s lithium industry, which currently exports concentrates to China for further processing rather than refining the metal locally. This development aligns with the country’s strategic goal to enhance its position in the global lithium supply chain and leverage its abundant lithium resources for economic growth.
