Zim lithium for premium market

THE future of Zimbabwe’s lithium exports appears bright and lucrative following revelations that one of only two active producers of ultra-low iron lithium has closed down.

Ultra-low iron petalite is the primary ingredient in the making of induction cooktops that provides heat for electric cookers, other high temperature glass products, fibreglass and wind turbines.

Globally, there were onl two producers of ultra-low iron lithium; spodumene or chemical grade lithium and the other being petalite or industrial or glass/ceramics lithium.

Only these two miners produced ultra-low lithium that meets the glass and ceramics market specifications, a situation that creates an opportunity for Prospect Resources to take advantage.

“In recent times, there have been two major producers of these low iron lithium concentrates. Now that the only ultra-low iron petalite producer has ceased operations, there are question marks over future supply of such products.

“Clearly, this is an opportunity for Arcadia. There are no listed lithium companies in Australia, Canada or South America that can supply this product,” Prospect said this week.

Prospect Resources Plc, the Australia Stock Exchange (ASX) listed developer of the Arcadia lithium Mine near the capital Harare, owns Africa’s most advanced lithium project.

The mine will produce both chemical and industrial grade lithium, which has a premium price on the global markets and whose value is further enhanced by current low supply volumes.

It is expected that the Arcadia Mine will generate US$3,42 billion in lithium exports over a life of mine (LoM) period of over 15,5 years.

The deposits in Zimbabwe, which currently has one active Mine in Bikita Minerals, are second to none in Africa while Zimbabwe is the world’s fifth largest producer.

Managing director Sam Hosack said while the events of 2020 have delayed the development of Arcadia, Prospect had still moved closer to the date for first dig and first products.

“We are well positioned for Prospect to take full advantage of the irrefutable wave of demand and the emerging supply gaps,” he said, as Prospect looks set to start mining in 2021.

About 18 percent of the glass and ceramics market is supplied by ultra-low iron petalite concentrate, which the Arcadia mine will produce.

“Growth in market share of ultra-low iron petalite has been restricted due to a lack of product volume and continuity of supply volumes — Arcadia will be able to satisfy this demand,” Prospect said.

In 2018, an estimated 17 percent of lithium production was consumed by the glass and ceramics market. This can be consumed as a mineral or as a refined chemical product.

Only ultra-low iron petalite and low iron spodumene can be used efficiently in the glass and ceramics industry.

Lithium’s has already proved its position as a strategic mineral given its role in the storage, use and transfer of energy, which has touched the globe through use of smart phones for global communication, laptops, electric grid stability and storage to power homes, and electric vehicles.

Given its strategic role within the global economy, lithium is among key minerals the Government has identified to drive its vision of building a US$12 billion mining industry by 2020 and middle-income State by 2030.

Prospect this year received an independent market report from leading market analysis firm Benchmark Mineral Intelligence on the use of lithium in the glass and ceramics market, which confirms the huge opportunities ahead.

The company signed the largest ultra-low iron petalite off take agreement in the world (up to 700 000 tonnes over 7 years) with Belgian firm Sibelco, which operates in extraction, production, and distribution of sand and minerals.

Prospect also signed a Memorandum of Understanding (“MOU”) with Russian Firm Uranium One for the purpose of undertaking a due diligence on Prospect and Arcadia Mine with the intention to invest in or acquire Prospect or Arcadia and secure more than 50 percent of the spodumene offtake. These discussions are progressing well.-ebusinessweekly