Kuvimba Mining House has entered a $310m deal with an international consortium comprising British and Chinese investors to build a three million tonnes (t) per year ore processing plant, reported Reuters.
The Zimbabwean state-owned company said the investors are “leading foreign British and Chinese companies in the global lithium market”.
The binding build, operate and transfer (BOT) agreement is set to establish a lithium concentrator at the Sandawana mine, a site previously known for emerald mining by Rio Tinto until 1993.
The proposed lithium concentrator is crucial for the initial stages of lithium processing, which involves the crushing and leaching of ore to produce concentrates.
These concentrates are then further refined into lithium carbonate or hydroxide, key components in battery production.
Currently, Zimbabwe exports unrefined lithium concentrates primarily to China for further processing.
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By GlobalData
The BOT agreement is due to conclude after a six-year term.
Expected to be operational within 18 months, the planned facility will be equipped to have an annual production target of 600,000t of lithium concentrate.
Earlier this week, Reuters reported that Kuvimba was considering the sale of up to a 40% stake in the Shamva Gold Mine in Zimbabwe.
The company is also seeking partners for its Freda Rebecca gold mine.
Kuvimba managing director Patrick Maseva-Shayawabaya was cited by the news agency as saying that Kuvimba aims to raise around $150m to develop an open-cast mine at Shamva and construct a processing plant.
Investments are also sought to extend the lifespan of the Freda Rebecca mine, which is currently projected at five years.
