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Ivan Zhakata, Herald Correspondent
KUVIMBA Mining House has signed a binding Build, Operate and Transfer (BOT) agreement with a Chinese consortium for a 3 million tonne per year ore processing plant at Sandawana Mine.
The plant is set to be commissioned within 18 months and shall generate an estimated US$600 million per year from a planned 600 000 tonnes of lithium concentrate.
It is expected that a second plant shall be installed following the completion of a second round of exploration activities, which are underway.
The BOT period shall be for a duration of six years during which period Sandawana employees shall be trained on operating the state-of-the-art processing equipment.
The consortium has committed to providing funding for the development of the mine, a concentrate plant and associated infrastructure (water, power, road and accommodation, among others).
Financing of the first plant is expected to be around US$310 million, which shall be disbursed within the next 18 months.
The loan shall be paid back to the consortium during the BOT period.
Kuvimba Mining House acting group chief executive Mr Trevor Barnard said they were elated to have signed the groundbreaking agreements with international entities.
“Kuvimba Mining House is on foot to become a world-class lithium processing company, with a strong competitive edge in marketing high-quality lithium concentrate,” he said.
“It is encouraging to see the growing trust and confidence in the Zimbabwean minerals sector by the broad spectrum of investors.
“We are committed to mutual partnership of transparency, accountability and efficient management of our local resources and this will underline the way we work.”
Sandawana Mines has one of the largest lithium deposits in Africa spanning a 21km long strip along the Mweza Mountain Range in Mberengwa District, Zimbabwe.
The former emerald mining company is also rich in tantalite, mica and gold.
Sandawana Mines employs over 600 local people, with 20 percent of vacancies reserved for women.
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