Sandawana Mine revival to boost lithium sector
ZIMBABWE’S lithium sector is primed for a massive investment outlay with Kuvimba Mining House (KMH) developing a US$3 billion Sandawana Mine and more than 600 000 tonnes of high-grade lithium ore valued at over USS216 million has been mined and stockpiled.
Sandawana Mine which has high-grade lithium deposit mine is located in Mberengwa District.
The plant is expected to be commissioned within 18 months.
Already, KMH has injected US$56 million towards reviving operations and exploring for lithium and other mineral resources.
The proposed project comes at a time when investments in the country’s lithium sector are on an upward trajectory.
Lithium is the booming mineral in the Zimbabwean mining sector, with world demand rapidly rising as manufacture of lithium-ion batteries soars and Zimbabwe holds one of the largest reserves in Africa of the preferred hard rock deposits and the most easily accessible.
Lithium has become a much sought-after mineral across the world as the automotive industry is shifting towards electric cars that among other valuables use lithium-ion batteries.
According to KMH, Sandawana Mine commenced mining operations in the 1950s as an emerald mine and has changed hands over the years.
In 2010, operations wound down due to working capital challenges and a reduction in the emerald resources.
However, in 2019, KMH, an investment and holding company of mining entities working in special minerals, energy minerals and base metals acquired the asset.
To date, KMH has injected a total of US$56 million to revive operations and explore for lithium and other mineral resources.
Kuvimba Mining House is carrying out a four-phased extensive exploration programme to determine the lithium mineral resources and reserves.
The scope of the exploration programme encompasses other mineral resources, including beryllium, tantalite and gold.
The firm says the three exploration companies led by an international entity are on a fast-track exploration programme with 33 drilling rigs on site.
“The exploration companies will issue the first phase JORC report in August 2023. The exploration programme is expected to establish a lithium resource of over 200 million tonnes of lithium ore at an average grade greater than 1,5 percent, making it the largest known resource in the region,” said the mining house.
Kuvimba Mining House Group CEO, Mr Simba Chinyemba said feasibility studies for a 4,5 million floatation plant are underway which will produce 700 000 tonnes of six percent concentrate.
Mr Simba Chinyemba
“The plant is expected to be commissioned within 18 months. To achieve this, KMH is evaluating financing and technical arrangements with some of the world’s largest companies in the lithium battery technology space.
“Discussions are at an advanced stage with at least three potential partners,” said Mr Chinyemba.
The mining entity said while the discussions are highly confidential, it is expected that Sandawana Mine valuation will range between US$2,5 billion to US$3 billion once fully operational.
The firm says lithium open-pit mining operations commenced in January and to date, Sandawana Mine has mined and stockpiled over 600 000 tonnes of high-grade lithium ore valued at over US$216 million.
A large state-of-the-art laboratory has also been completed at the mine.
Lithium off-takers have been identified for the first 18 months, which will generate approximately US$700 million in the next 18 months after the first phase of the road network has been rehabilitated.
Sandawana Mine plans to construct a new 35-kilometre road and rehabilitate as well as asphalt surface a road network of over 115km.
Road construction is scheduled to commence next month.
Another key investment is the construction of a 60 megawatt solar plant and feasibility studies are underway.
The electricity produced from the plant will also benefit the local communities.
The peak capital investment demand for the plant construction project is approximately $300 million.
Added to that, the mega project has in the past three months already employed more than 1 000 locals.
Given the enormous scale of the entire project, more people are expected to be employed.
In 2019, the Second Republic launched the US$12 billion mining industry roadmap to be attained by the end of this year with lithium, one of the strategic minerals to the achievement of the envisaged milestone, expected to contribute US$500 million by the end of 2023.
Gold, which is the major foreign currency earner is anticipated to contribute US$4 billion, platinum (US$3 billion), diamonds (US$1 billion) while chrome, ferro-chrome and carbon steel will generate US$1 billion, and coal (US$1 billion).
Other minerals are expected to generate US$1,5 billion.
Before the launch of the mining industry roadmap in 2018, mining exports generated US$2,7 billion annually but the figure jumped to US$5,3 billion by 2021.
At present, the mining sector accounts for 73 percent of foreign direct investment, 83 percent of exports, 19 percent of Government revenues, two percent of formal employment and 11 percent of individual incomes.-chronicle
