Online Reporter
Oliver Kazunga
Senior Business Reporter
CHINESE conglomerate Huayou Cobalt has invested US$1,1 billion in Zimbabwe’s mining sector since commencing operations in 2022.
The investment includes the US$400 million lithium sulphate plant in Goromonzi, the first of its kind in Africa.
Huayou, one of the world’s leading producers of lithium-ion battery materials, also spent US$422 million in 2021 in acquiring the Arcadia lithium project from Prospect Resources, an Australian-headquartered mining group.
Through its local subsidiaries – Prospect Lithium Zimbabwe (PLZ) and Arcadia Technology Zimbabwe (ATZ) – the company is building the lithium sulphate processing facility, set for commissioning in the first quarter of next year.
With an installed capacity of 50 000 tonnes per annum, the lithium sulphate plant processing facility will be supported by a 70-megawatt thermal power plant.
In an interview during a media tour of the lithium mine on Thursday, PLZ public relations manager Mrs Patience Chizodza said: “As an organisation, we are committed to not only expanding our operations, but also to supporting local communities and contributing to the country’s long-term economic development.
“We have invested a total of US$1,1 billion since we started production in 2022, and this investment is not just in operations, but also in environmental protection, community development, and good governance.”
The mining concern, which employs 1 000 people directly and another 1 000 indirectly through contractors is producing lithium concentrate that is exported for further processing into battery-grade materials used in lithium-ion batteries.
Once the lithium sulphate plant becomes operational, an additional 1 000 jobs will be created.
ATZ managing director Mr Henry Zhu said the lithium sulphate plant also aligns with the Government’s vision to promote value addition in the mining sector and help Zimbabwe attain upper-middle-income society status by 2030.
“The lithium sulphate plant is a major investment in Zimbabwe’s mining sector, leveraging Goromonzi’s rich lithium resources to produce high-quality lithium sulphate,” he said.
“This product is a precursor to lithium carbonate, which is a component in the manufacture of lithium-ion batteries that power electric vehicles, renewable energy systems, and other modern technologies.
“Not only has this plant created jobs and stimulated local economic activity, but it also showcases Zimbabwe’s potential as a major player in the global lithium market.”
To encourage value addition and beneficiation, the Government has announced that, effective January 2027, the export of lithium concentrate will be banned as part of efforts to promote value addition and beneficiation in the mining sector.
The mining sector is one of Zimbabwe’s major economic centrepieces, accounting for at least 75 percent of the national total exports anchored by gold, platinum, and diamond as well as chrome and coal, .
Considered as the mineral of the future due to its use in the production of electric vehicle (EV) batteries, lithium’s contribution to Zimbabwe’s total exports is expected to improve through the opening new mines and expansion of existing lithium operations as well as the consolidation of the beneficiation policy in the local mining industry.
The tour highlighted the ongoing Goromonzi road expansion project by PLZ, further augmenting the Government’s efforts in infrastructure development in the country.
