Kuvimba Mining House eyes listing on VFEX

ZIMBABWE’S largest mining group, Kuvimba Mining House (KMH) is eyeing to list on the Victoria Falls Stock Exchange in a bid to unlock shareholder value of the firm as it expects that valuation will range between US$2,5 billion to US$3 billion once fully operational.

The bourse is a subsidiary of the ZSE established to kick start the Offshore Financial Services Centre (OFSC) earmarked for the special economic zone in Victoria Falls.

It is part of efforts to attract global capital and restore foreign investor confidence in Zimbabwe’s capital markets and help companies raise capital in foreign currency.

Listed entities cut across mining, property, banking and hospitality sectors.

Group chief executive officer, Mr Simbarashe Chinyemba told delegates at the ongoing inaugural Lithium and Battery Conference held on the sidelines of Mine Entra in Bulawayo yesterday that the firm is exploring modalities of listing.

“We are exploring the possibilities of listing Sandawana on the VFEX in a bid to increase shareholder value. So we are looking at various instruments that will guide us in listing,” said Mr Chinyemba.

The lithium conference was held under the theme “Powering Zimbabwe’s Future: Exploring Opportunities and challenges for sustainable development in the Lithium and Battery Mineral Industry.”

The mining house has set aside US$30 million for further exploration, with the second phase of lithium exploration at Sandawana.

Sitting on the country’s largest lithium ore reserves estimated at around 200 million tonnes, Sandawana Mine is expected to provide impetus to lithium production and significantly contribute to the national vision of a US$12 billion mining economy by the end of this year.

Zimbabwe is ranked the sixth largest lithium reserves globally and represents one of Africa’s biggest producers of the commodity.

Sandawana, which has a history dating back to 1955 and has exchanged ownership over the years when emeralds were first extracted at the mine, is being resuscitated as a lithium and tantalite operation by KMH which took over the asset in 2019.

A four-phased extensive exploration program is underway to determine the lithium mineral resources and reserves.

The exploration programme encompasses other mineral resources, including beryllium, tantalite, and gold. Three exploration companies led by an international entity are currently on a fast-track exploration programme with 33 drilling rigs on site.

Lithium open-pit mining operations commenced in January 2023.

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.

Speaking at the same occasion, Sandawana general manager, Mr Godwin Gambiza said Zimbabwe is very attractive in investment opportunities as the lithium sector is still at the growth stage of the industry cycle.

He said it is strategic to enter the sector at this stage.

Mr Gambiza noted that investment in infrastructure up and downstream industries can also be lucrative.

Lithium

Despite the sector being lucrative, Mr Gambiza said there are constraints in securing long term funding on the local market.

He said the solution is to establish partnerships to tap into foreign capital.

“Securing long-term funding is currently difficult, however, we are encouraged by Government extension to 2030 on the usage of the multi-currency system. “We are hopeful that long-term funding will be possible.”

He further noted that although the sector is relatively new and there are skills shortages, he said working with experts in the field such as China will aid in skills knowledge transfer.”

Recently, the firm said lithium open-pit mining operations commenced in January and it 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.

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. -chronicle