Online Reporter
Mukudzei Chingwere in Beijing, China
Zimbabwe’s policy of banning the export of unprocessed minerals and requiring mining companies to beneficiate their resources locally will not deter investors, a leading Chinese investor has said.
Sinomine Resource Group vice-president Mr Frank Wang was speaking yesterday after meeting Vice President Dr Constantino Chiwenga, who is on an investment mission in China.
Far from retreating in the face of Zimbabwe’s evolving mineral beneficiation policies, Sinomine, the parent company of Bikita Minerals, has already invested more than US$300 million in expanding and modernising its Zimbabwean operations and has secured a further US$500 million for a lithium sulphate plant that will take processing at Bikita further down the value chain.
The new project is expected to eventually produce 125 000 tonnes of lithium sulphate annually, the final intermediate product before the manufacture of battery-grade lithium chemicals.
His remarks provide a significant vote of confidence in Zimbabwe’s latest policy interventions aimed at ensuring that the country derives greater value from its vast mineral resources rather than remaining primarily an exporter of raw and semi-processed commodities.
They also rebut fears that increasingly stringent beneficiation requirements could discourage foreign capital, with Sinomine instead committing further investment to local lithium processing.
The meeting with Sinomine was one of seven engagements Vice President Chiwenga held with major Chinese companies yesterday as his investment mission gathered momentum in support of the Government’s drive to attract capital that strengthens Zimbabwe’s manufacturing and industrial base.
Sinomine’s investment trajectory at Bikita provides a practical example of the transformation the Government is seeking across the mining sector.
“As I mentioned in the meeting, our goal is to create a win-win-win situation, benefiting the company, the Government and the community,” said Mr Wang.
“We are trying to add as much value as possible and localise operations within the country.
“As everyone knows, Bikita Minerals now has a processing plant.
“We are striving to utilise all the resources. We are currently talking about lithium, but in future we will also have tantalum and, at the moment, we are building a refinery in the area,” said Mr Wang.
After acquiring Bikita Minerals in 2022, the Chinese resources group embarked on an extensive expansion programme.
More than US$300 million has since been invested in exploration and beneficiation, including the development of spodumene and petalite processing capacity.
The investment has transformed operations at one of Zimbabwe’s oldest mines. The expanded facilities have the capacity to produce about 300 000 tonnes of chemical-grade spodumene concentrate and 480 000 tonnes of petalite annually.
Sinomine has secured approximately US$500 million for the construction of a lithium sulphate plant at Bikita, with the first phase expected to have an annual capacity of 60 000 tonnes.
A second phase is expected to add another 65 000 tonnes, taking total projected annual capacity to 125 000 tonnes by 2028.
Mr Wang said that when the first phase of the expansion project is complete, it is expected to create more than 800 jobs, with at least 400 being direct positions.
“We are still working with preliminary figures. Directly, we expect to hire at least 400 employees,” he said.
Rather than treating mineral exports simply as a source of foreign currency, the Government wants mining investment to stimulate processing industries, create skilled jobs, encourage technology transfer and generate opportunities for local suppliers.
Among the companies that met Vice President Chiwenga was PowerChina, whose Vice-President for East and Southern Africa, Mr Wang Yuzhi, said the company was prepared to invest in a range of energy initiatives, including solar power.
Mr Wang said Vice President Chiwenga had called on responsible companies to invest in Zimbabwe, adding that PowerChina believed the country had the right ingredients for investment.
PowerChina is already familiar with Zimbabwe, having participated in major energy infrastructure projects, including Hwange Thermal Power Station Units 7 and 8, as well as projects in Nyabira and Ngezi.
“We are prepared to invest in Zimbabwe, create jobs for local people and operate in an environment that is beneficial to both investors and the host country,” said Mr Wang.
Agriculture also featured prominently, with Dayu Irrigation Group deputy general manager for the International Business Division, Mr Fu Shau, saying his company was already supplying agricultural and irrigation equipment in Zimbabwe and was looking to deepen its presence.
Mr Fu said the company’s long-term plan was to manufacture irrigation equipment in Zimbabwe, aligning its operations with the Government’s value-addition and industrialisation agenda.
Dayu has longstanding links with Zimbabwe. In 2018, it signed a US$80 million agreement to supply centre-pivot and drip irrigation systems and has developed irrigation solutions suited to crops such as maize and tobacco.
C-Bezoar Pharmaceutical also expressed a willingness to explore investment opportunities in Zimbabwe and is earmarking expansion into agriculture.
The Beijing-based biotechnology company specialises in traditional Chinese medicine-derived biomedicine, pharmaceutical research and development, and natural medicinal resources.
China Rail International Group (CRIG), which has previously engaged Zimbabwean authorities on possible cooperation in reviving the country’s railway system, was also among the companies that met the Vice President.
CRIG is the international arm of China Railway Group Limited and has extensive expertise in railways, railway electrification and other major infrastructure projects.
It operates in 39 countries and has been involved in flagship projects, including the China-Laos Railway, the Jakarta-Bandung High-Speed Railway and the Addis Ababa-Djibouti Railway.
The company’s representative, Mr Eason Zhang, said they were optimistic about advancing cooperation with Zimbabwe.
“We will meet Government ministries after this meeting to discuss the details and advance this project to ensure its success,” said Mr Zhang.
“Yes, it will happen very soon. We will work together with the Government and the leadership of the Office of the President and Cabinet.
“We will secure the funding and then begin implementation. For us, we can construct the railway very quickly and efficiently.”
China State Construction Engineering Corporation (CSCEC) also expressed willingness to undertake major construction projects in Zimbabwe.
Speaking to journalists after meeting Vice President Chiwenga, CSCEC general manager Mr Chen Lie said the company was keen to explore opportunities and carry out construction projects in Zimbabwe.
The expression of interest potentially opens avenues for cooperation in housing, public infrastructure, highways, bridges and other major construction works.
CSCEC is one of China’s largest construction enterprises, with expertise spanning building works, municipal infrastructure and highways.
Its portfolio includes public works, airports, hotels, educational and healthcare facilities, housing and industrial developments, while its infrastructure operations extend to railways, mega-bridges, highways and urban rail systems.
Henan Agricultural Investment Group Company also called on the Vice President.
