Cluff Africa to build lithium mine in Zim
Cluff Africa Limited has signed a non-binding agreement with Zimbabwe’s sovereign wealth fund to develop a lithium mine in the southern African country.
Cluff will be assigned a 45 percent share of licences at Sandawana, founder Mr Algy Cluff said in an emailed statement, without disclosing financial terms.
Zimbabwe is seeking to attract investors after lithium prices steadied following a boom-to-bust period that left an array of stalled projects, scrapped deals and production cuts. State miner Kuvimba Resources has said it’s identified a lithium ore resource of 38 million tons at Sandawana in the country’s south.
“We can now begin to develop what we believe to be a world-class, high-grade lithium resource,” Mr Cluff said. The company will start a drilling programme as soon as it has signed a final agreement with the wealth fund, it said, without giving a timeframe.
Industry veteran Mr Cluff has previously invested in Zimbabwe’s gold sector, but is best known for his North Sea oil and gas company Cluff Natural Resources — now Deltic Energy.
Zimbabwe’s wealth fund also holds gold, nickel and platinum mines. Calls to the fund went unanswered.
Meanwhile, the Southern African country has seen massive investments in developing lithium assets over the last few years amid the growing global demand for the precious metal.
The exponential global demand for lithium is being driven by the rising production of electric vehicles – and other electronics – seen as essential for energy transition based on zero carbon emission.
Notably, most of the investments in Zimbabwe’s lithium sector have come from large-scale miners.
The country currently has more than seven lithium exploration and mining projects in the country, which are at different development stages, with Chinese companies leading the charge.
These include the Arcadia Lithium project near Harare, with an estimated investment of US$477 million, Bikita Minerals’ only global petalite operation being further developed into a 300 000 tonne per annum spodumene operation, Chengxin Lithium Group’s Sabi Star 3000 tonnes per annum project in Buhera, Zulu Lithium’s US$34 million spodumene project near Bulawayo and Bravura’s multi-million dollar operation under development in Kamativi.
Processing plants for lithium projects are also being developed across the country including in Shamva, Kadoma, Chegutu, Goromonzi and Mberengwa, among others.
This makes lithium 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.
