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Ivan Zhakata
Herald Correspondent
Kuvimba Mining House, a Zimbabwean mining company, has signed a deal with a Chinese consortium to develop its Sandawana Mines lithium project.
Kuvimba, a subsidiary of Mutapa Investment Fund, signed a binding Build, Operate, and Transfer (BOT) agreement with the consortium.
The agreement involves a 3 million tonne per year ore processing plant to be built within 18 months.
The plant is expected to generate an estimated US$600 million per year from processing 600 000 tonnes of lithium concentrate.
A second plant is planned after further exploration activities. The consortium will fund the development of the mine, processing plant, and infrastructure (water, power, roads and accommodation).
The first plant’s financing is estimated at US$310 million and will be disbursed within 18 months.
It will be paid back during the BOT period of six years.
This agreement positions Kuvimba to become a world-class lithium processing company and the investment reflects growing trust and confidence in the country’s mineral sector.
Kuvimba is committed to transparent, accountable and efficient management of local resources.
Online Reporter