Premier works to address water challenges

PREMIER African Minerals has taken steps to address water challenges emanating from the El Nino-induced drought that could impact plant operations with one measure including building a large-capacity reservoir at the plant.

The lithium company operates in Fort Rixon and a consistent water supply is crucial for lithium production.
In the latest update, Chief Executive Officer Mr George Roach said the ongoing drought in the country has been public knowledge for some time, and the mining firm has taken steps to carefully assess water usage in the plant.

He noted that the water balance as per the original plant supplier was significantly understated and, as the company had also already anticipated that in the first year of production, Zulu’s storage dam might not reach capacity during the last wet season.

Mr Roach said the firm had arranged access in December 2022 from other dams near the plant and increased the return water recovery from Zulu’s tailings dam. The company also reconfigured in plant process water reticulation including the installation of the thickener.

A massive dam was constructed along Machakwe River to feed the plant and surplus water is earmarked for an irrigation scheme, which will contribute to food security in the area. Mr Roach noted that the entire plant has been in the region of US$75 million.

“Premier sincerely hope the conditioning tank will be the last plant modification and on that note, the Board remains confident regarding the prospects for Zulu and we note that at this time the development of Zulu, a complete mine, has cost the Company the better part of US$75 million, and neither this nor the deemed valuation of Zulu agreed with our take-off partner is reflected in our current market capitalisation,” he said.

On the plant, he said it was only possible to optimise the floatation circuits when Zulu was able to feed the plant at design capacity.

“This was achieved only after our Zulu team was able to resolve the design deficiencies associated with classification of milled material. It is remarkable and a tribute to our Zulu team and Enprotec as OEM for the float plant that the Company was able to identify this conditioning tank as essential and to have this ordered and expected to be installed and commissioned by 10 July 2024.

“While the Company will review the overall plant in some detail in the Annual Financial Statements due for release on 28 June 2024, it would be remiss not to correct certain misunderstandings by some shareholders in respect of Zulu’s plant, pit development and water.”

Premier Africa Mineral is one of several lithium firms operating or being developed in the country with Chinese companies leading the charge.

Lithium is one of the key prospects for Zimbabwe’s mining industry, which the Government intends to grow to a US$12 billion sector, from US$2,7 billion in 2017.

Zimbabwe earned US$209 million from lithium exports in the first nine months of last year, from US$1,8 million in 2018 and US$70 million in 2022. It is expected to soon become the country’s third largest mineral export after gold and platinum.