Chinese mining companies Zhejiang Huayou Cobalt and Tsingshan Holding Group are collaborating with a Zimbabwean state-owned company to develop a lithium mine in Sandawana, despite a significant slump in lithium prices. They plan to invest around $250-300 million to establish a facility with an annual output of approximately 500,000 tons of lithium concentrate. The acting CEO of Kuvimba Mining House expresses optimism for a price recovery over the next few years.
China’s Zhejiang Huayou Cobalt Co. and Tsingshan Holding Group Co. are collaborating with a Zimbabwean state-owned enterprise to develop a lithium deposit, despite significant decreases in lithium market prices. These companies are already engaged in lithium ventures in Zimbabwe and are currently undertaking a feasibility study for a proposed mining and processing facility at Sandawana, situated in the southern region of Zimbabwe, as reported by Bloomberg. The CEO of Kuvimba Mining House confirmed this endeavor, which had been initially disclosed in July without specifying the partners’ identities. In recent years, Zimbabwe has emerged as a vital player in the global lithium sector, gaining heightened interest and investments from Chinese firms attracted by the nation’s abundant lithium resources. Even though lithium spot prices have experienced a downturn of nearly 90% since late 2022, attributed to increased supply and lower-than-anticipated demand for electric vehicles, Chinese enterprises are steadfast in their quest to secure lithium feedstock for domestic refineries. Huayou and Tsingshan are poised to invest between $250 million and $300 million in the establishment of their lithium mining and processing facility, which is forecasted to produce approximately 500,000 tons of lithium concentrate each year, as stated by Trevor Barnard, acting CEO of Kuvimba. Mr. Barnard has expressed hope that lithium prices will gradually recover over the coming year, forecasting a robust rebound in 2026 and 2027 as the existing production surpluses transition into shortages. He is confident about the project’s profitability, asserting, “Our economics show that we will still be a profitable business even at the current pricing levels.” Across the continent, active lithium mining and exploration initiatives are proliferating in regions such as Namibia, Mali, Ghana, and the Democratic Republic of the Congo; however, these undertakings remain modest compared to the extensive projects developed in the Americas, Australia, and Europe.
The collaboration between Chinese firms and Zimbabwean entities marks a significant development in the global lithium market. In recent years, Zimbabwe’s lithium resources have attracted substantial attention, particularly from Chinese investors, seeking to exploit the country’s wealth in this critical mineral amid fluctuating market conditions. With lithium becoming increasingly vital for electric vehicle production and energy storage systems, the stakes in its mining sector continue to rise, despite recent downturns in pricing.
In summary, the alliance between Zhejiang Huayou Cobalt and Tsingshan Holding Group with Kuvimba Mining House highlights the ongoing interest in lithium mining in Zimbabwe, even amid challenging market conditions. The planned investment signifies confidence in the recovery of lithium prices in the near future, as projected growth in demand for electric vehicles is anticipated to outpace supply deficits in subsequent years. This project underscores the strategic importance of Zimbabwe in the global lithium supply chain.
Original Source: www.newzimbabwe.com
