Kuvimba enters processing plant deal with a Chinese firm

KUVIMBA Mining House has signed a binding Build, Operate and Transfer (BOT) agreement with a Chinese consortium for a three million tonne per year ore processing plant at Sandawana Mine in Mberengwa, Midlands Province.

The plant is set to be commissioned within 18 months and shall generate an estimated US$600 million annually from a planned 600 000 tonnes of lithium concentrate.

“KMH has signed a binding BOT agreement with the Chinese consortium for a three million tonne per year ore processing plant.

“It is expected that a second plant shall be installed following the completion of a second round of exploration activities which are underway.

“The BOT period shall be six years during which period Sandawana employees shall be trained on operating the state-of-the-art processing equipment,” the mining group said in a statement.

It said the Chinese consortium has committed to providing funding for the development of the mine, a concentrate plant and associated infrastructure (water, power, road and accommodation, among others).

The financing of the first plant is expected to be about US$310 million, which shall be disbursed within the next 18 months.

The loan would be paid back to the consortium during the BOT period.

According to KMH acting group chief executive officer, Engineer Trevor Barnard: “We are elated to have established these ground-breaking agreements with international entities.

“Kuvimba Mining House is on foot to become a world-class lithium processing company, with a strong competitive edge in marketing high-quality lithium concentrate.

“It is encouraging to see the growing trust and confidence in the Zimbabwean minerals sector by the broad spectrum of investors.”

He said KMH was committed to mutual partnership of transparency, accountability and efficient management of local resources and this will underline the way the group works.

Recently, KMH announced that it has commenced implementing a mine-to-market traceability software the group adopted in 2021 in compliance with international regulatory requirements for transparency and accountability in the mining industry.

The software enables the tracking of all the minerals produced within the group from extraction right up to their marketing.

Since 2008, mineral conflict has been an issue globally with international market leaders denouncing the production and trading of such resources.

Sandawana Mines has one of the largest lithium deposits in Africa spanning a 21km long strip along the Mweza Mountain Range in Mberengwa District.

The former emerald mining company is also rich in tantalite, mica and gold.

So far, Sandawana Mines employs over 600 local people, with 20 percent of vacancies reserved for women.

Sandawana has successfully transferred the mine’s clinic from the Ministry of Health and Child Care to Sandawana Mines ownership to establish a partnership with national health services providers to build a state-of-the-art hospital in Mberengwa.

Through Sandawana Mines, KMH has widened-built and rehabilitated over 20 kilometres of road networks in Mberengwa and it is expected that over a 100km road network that links the mine and Zvishavane shall be developed.

Water reticulation infrastructure shall be 30km long and villagers along the pipeline shall benefit.

A subsidiary of the Mutapa Investment Fund, KMH’s vision is to create a better future for Zimbabwe through responsible and accountable mining practices.

KMH seeks to create shareholder value by developing Zimbabwe’s natural resources.

The group aims to improve the livelihoods of Zimbabweans and sustain that improvement beyond generations.

KMH is wholly owned by the Government and to this end, the group has acquired and turned around mines that are of strategic importance to the country including Freda Rebecca Gold Mine, Shamva Gold Mine, Zimbabwe Alloys, and Jena Mines, among others.-ebusinessweekly