Lithium agreements to spur Zim mining sector

Herald Reporter

The signing ceremony of binding agreements for the development of Arcadia Lithium Mine in Goromonzi yesterday marks a new and larger wave of foreign direct investment into Zimbabwe’s booming mining sector, Zanu PF Secretary for Information and Publicity and national party spokesperson Ambassador Christopher Mutsvangwa has said.

President Mnangagwa witnessed the signing ceremony that took place at State House. The agreements were signed between Australian Stock Exchange-listed Prospect Resources and Shanghai Stock-Exchange-listed Zhejiang Huayou Cobalt.

The deal, valued at US$422 million, will see Prospect Resources selling its 87 percent stake in Prospect Lithium Zimbabwe.

In a statement yesterday, Ambassador Mutsvangwa said the buy out of Arcadia Lithium by Huayou Chemicals of China was a historical record in the merger and acquisition story of Zimbabwe since the 1890 colonial dawn.

“The bountiful lithium and cobalt mineral resources of Zimbabwe are finally hogging the attention of the new energy green billionaires of the world. This is a crucial inflexion juncture as new energy electric vehicles begin to overtake the century old, traditional internal combustion engine of fossil fuels.

“And all weather friend, China has taken an unassailable global leadership in electric vehicle manufacturing. This translates to more and better jobs for youths,” he said.

Ambassador Mutsvangwa said President Mnangagwa had put a package that would put Zimbabwe among the providers of battery storage for new energy cars.

“Harare is among the countries vying to replace the Middle East and its petroleum as the new green energy global player.

“This auspicious event marks a new and larger wave of foreign direct investment pouring into the booming Zimbabwe mining sector,” he said.

The project is the largest lithium deposit in Africa, comprising 808 000 tonnes of lithium oxide.

Zimbabwe is envisioning a US$12 billion mining industry by 2023.

Of the US$12 billion, gold, platinum and diamonds will contribute US$4 billion, US$3 billion and US$1 billion respectively.

Chrome, iron ore and carbon steel will contribute US$$1 billion while coal and hydrocarbons will contribute the same. Lithium at US$500 000 while other minerals will constitute US$1,5 billion.