Oliver Kazunga
Senior Reporter
ZIMBABWE’S mineral beneficiation drive was boosted by US$1,4 billion investments by Chinese mining giant Huayou Cobalt, strengthening the country’s push to expand local mineral processing and value addition.
The three mines operated by the company were all included in the investment: Prospect Lithium Zimbabwe by US$700 million, Arcadia Technology Zimbabwe by US$400 million and Sandawana, which is under a build-operate-transfer through Mutapa Energy Resources, by US$300 million.
The investments are expected to contribute to increased exports, employment creation and Government revenue, while expanding Zimbabwe’s capacity to process lithium locally.
This dovetails with the aspirations of the National Development Strategy 2 (NDS 2) and the value addition and beneficiation thrust.
During a recent media tour organised by the Minerals Marketing Corporation of Zimbabwe, PLZ public relations manager Mrs Patience Chizodza said her organisation, which accounts for the largest share of the investment, operates, one of Africa’s biggest single hard-rock lithium processing facility.
“We have got Prospect, an investment of US$700 million which is here, where we are sitting at, the largest lithium mine investment in Zimbabwe.
“We are one of Africa’s largest single hard rock lithium processing facility… Arcadia is Africa’s first integrated lithium mining beneficiation project with an investment of US$400 million.
“And then, we have the Sandawana project in the Midlands, the investment for this one is US$300 million and it’s a joint-venture under a B.O.T with Mutapa Investment Fund through Mutapa Energy Resources,” she said.
The project has reportedly generated more than US$305 million in export earnings to date and paid US$300 million in taxes to Government.
Mrs Chizodza said Prospect had invested more than US$5 million in corporate social responsibility programmes.
Arcadia is an integrated lithium mining and beneficiation project that began operations in 2025.
The operation has a reported annual production capacity of 50 000 tonnes, although the specific product and production basis were not detailed.
The project forms part of efforts to increase domestic processing of lithium and strengthen the contribution of mineral value addition to the economy.
The three projects are also expected to support employment across mining operations, processing facilities and associated supply chains.
According to Mrs Chizodza, nearly 4 000 jobs have been created across Prospect and Arcadia and their associated activities.
“Huayou Cobalt has contributed substantially to Zimbabwe’s foreign exchange reserves as much amounts generated from the PLZ projects, annual foreign exchange earnings from Prospect and Arcadia are expected to exceed US$600 million from year 2026.
“US$100 million again that has been paid to the Government and of course employment creation.
“Nearly 4 000 jobs have been created in both subsidiaries,” she said.
Zimbabwe has been pursuing mineral beneficiation and value addition as part of efforts to derive greater economic benefits from its natural resources, with lithium emerging as an important mineral in the country’s mining investment landscape.
The three projects’ combined investment of US$1,4 billion highlights the scale of capital being deployed in lithium mining and processing.
Meanwhile, Zimbabwe’s entire lithium sector has attracted more than US$3,4 billion in investment — with the investment pipeline comprising US$2 billion already deployed.
At present, the country has five major lithium producers — Prospect, Gwanda Lithium Company, Kamativi Mining Company, Bikita Minerals and Maxmind, which owns Sabi Star Lithium Mine in Buhera, Manicaland.
Zimbabwe, which holds some of Africa’s largest lithium reserves and ranks among the world’s key producers, is positioning the mineral as a central pillar of its mining-led industrialisation and energy transition strategy.
Production is projected to reach 344 000 tonnes of lithium sulphate at peak output, strengthening Zimbabwe’s ambition to become a major global hub for battery mineral processing.
The mining sector remains a key pillar of the economy, contributing over 12 percent to GDP and accounting for more than 80 percent of export earnings.
