Value-added lithium operation on cards
United Kingdom (UK) listed firm, Marula Mining, intends to establish a valued-added lithium operation Muchai Mining in Bikita, Masvingo Province, chief executive officer (CEO), Jason Brewer revealed.
Value addition is in essence the ability to produce out of a specific natural raw material (hard rock as Spodumene, Lepidolite, etcetera, or brine from salars) a chemical product for lithium batteries production.
Lithium demand has grown substantially across the world, amid the push to transition to a climate-friendly electric car, with petroleum-powered internal combustion engines among the biggest polluters of the environment.
The mineral is expected to be an integral part of the Government’s plans to grow the mining industry into a US$12 billion industry by end of this year, generating at least US$500 million annually.
However, this depends on the individual properties of the raw material being fed into a conversion process and is only successful if the resulting chemical product matches the customers’ performance requirements.
There has been massive interest from foreign companies, especially from China, to invest in Zimbabwe’s lithium sector.
One of the major investors is Huayou, which acquired Arcadia Mine, near Harare, from Prospect Resources, an Australian-listed mining firm in a US$422 million deal in 2022.
Muchai Mining was established to focus on the fast-growing battery metals sector and the subsidiary will secure advanced lithium and copper mining and development opportunities in the country.
Mr Brewer told international media that Marula Mining was currently piloting a process for value-added lithium in South Africa and the plan would be extended to Zimbabwe, where the company has lithium projects under consideration, as well as to Zambia and Tanzania.
This comes as several stages of refining are needed before the spodumene concentrate from mines is ready for use as lithium in electric car batteries.
In a circular issued on 20 December 2022, and in terms of the Base Minerals Export Control Act, Mines and Mining Development Minister Winston Chitando said, “No lithium bearing ores, or unbeneficiated lithium whatsoever, shall be exported from Zimbabwe to another country.”
The ban will “ensure that the vision of the president to see the country becoming an upper-middle income economy has been realised,” it added.
The Zimbabwe Miners Federation, a lobby group for artisanal and small-scale miners, called for the ban to be lifted for six months, saying that existing offtake agreements have been prejudiced.
The ban, the federation says, has led to a stockpile of nearly two million tonnes of lithium ore.
Mr Brewer is convinced the Zimbabwe Government’s decision to ban raw exports is the right one. He said Zimbabwe made the decision to avoid becoming like Western Australia, where iron ore is extracted and shipped without any value addition.
“They’re not interested in seeing merely a hole in the ground. They desire to witness construction,” he said.
He stated that it is reasonable for countries to seek to go up the value chain because Africa now possesses some of the world’s highest grade and highest value mineral projects. Instead than sitting back and watching as lithium refineries are erected in countries like north-east England, African
governments need to take the initiative.
“It’s only going to happen if countries take decisions like Zimbabwe,” Mr Brewer said.
“You have to give a nudge in the right direction.”
Muchai Mine is owned 80 percent by Marula Mining and Gondo Mineral Resources Ltd, a local company, holds the remaining 20 percent.
Mr Brewer said “The decision to establish Muchai Mining is the result of extensive due diligence and careful consideration of various opportunities in
the region.
“Our team has been on the ground since the beginning of the year, and we are excited about the potential that Zimbabwe offers the company and
the industry.
“With Marula’s experience and expertise, combined with our local partners’ knowledge and experience in the country, we believe Muchai Mining is
well positioned for success.”
Marula Mine is known for its operations in Tanzania, South Africa and Zambia.-herald
