Chinese firm invests US$15m into Zvishavane lithium project

Chinese-owned Zheli Mining has injected US$15 million into its Zvishavane lithium operations as part of an aggressive investment strategy to scale up production and boost local mineral value addition.

The capital deployment marks a major milestone for the Midlands Province operation, which officially commenced production in August 2025 following the completion of its initial plant setup.

Speaking on Tuesday during a media tour organised by the Minerals Marketing Corporation of Zimbabwe (MMCZ), Zheli Mining general manager Mr Kudakwashe Zimondi revealed that the company’s capital outlay has established two main processing lines, with one currently fully operational.

Zheli Mining processes lithium ore supplied through an off-take deal with Sandawana, a Zvishavane mining operation under the State-owned Mutapa Investment Fund.

The company processes its lithium up to the concentrate stage, amid plans for further investment into value addition and beneficiation.

“The plant is currently processing about 900 tonnes of ore per day at an average recovery rate of 20 percent,” Mr Zimondi said.

“Once full processing capacity across the lines is unlocked, the operation will handle in excess of 1 000 tonnes daily.”

Building on its initial US$15 million outlay, Zheli Mining is preparing to expand its operational footprint by constructing a specialised lithium sulphate processing facility, scheduled to break ground next February.

The planned facility represents a strategic shift from initial concentrate extraction towards higher-tier chemical beneficiation, aligning with national policy that mandates domestic mineral refining prior to export.

Zheli Mining is owned by Chinese investors, who continue to hold a dominant stake across Zimbabwe’s expanding lithium sector amid surging global demand for energy transition minerals.

Mining remains the bedrock of Zimbabwe’s economy, accounting for over 70 percent of total export earnings and attracting the lion’s share of foreign direct investment (FDI).

As the Government targets a multi-billion-dollar mining economy, critical minerals—led by lithium, gold, platinum group metals (PGMs) and chrome—are vital drivers for fiscal revenue, infrastructure development and employment creation.

The lithium sub-sector, in particular, has emerged as a key catalyst for economic growth.

Foreign investments, predominantly from Chinese conglomerates, have poured hundreds of millions of dollars into domestic mining operations and processing infrastructure over recent years.

Government policies banning the export of unprocessed raw lithium ore have accelerated this trend, compelling companies to build local processing plants and keep value addition within the country.

Zimbabwe holds Africa’s largest known lithium reserves and ranks among the top global producers alongside Australia, Chile, China and Argentina.

With major deposits such as Bikita Minerals, Arcadia, Kamativi and Sandawana, the country is uniquely positioned to become a central player in global critical mineral supply chains.

This surge in domestic investment comes as the global shift toward cleaner energy dramatically reshapes resource demand.

The rapid adoption of electric vehicles (EVs) and grid-scale energy storage systems relies heavily on lithium-ion battery chemistry, driving unprecedented international demand for high-purity lithium products like lithium carbonate and hydroxide.

By transitioning from crude ore exports to refined chemicals such as lithium sulphate, projects like Zheli Mining’s plant help ensure Zimbabwe captures greater economic value from the global green energy revolution.-herald