Zimbabwe’s state-owned mining company, Kuvimba Mining House Limited, will begin construction of a $270 million lithium concentration plant at its Sandawana mine in the third quarter of this year, with commissioning expected in early 2027.
Speaking to reporters, the CEO of Kuvimba Mining, Trevor Barnard, said the mining firm is partnering with two Chinese metals giants to build a lithium concentrator which will process 600,000 metric tons per year.
While Barnard did not disclose the names of the partner firms citing ongoing talks, he did say the two firms will build and operate the plant for a minimum of five years, before transferring it back to Kuvimba.
“We are still finalising the last few agreements that we need to put in place and making sure we have all the necessary and compatible industry conditions for our partner to start construction,” Barnard said.
“We are looking at breaking ground in the third quarter.”
Kuvimba, which has been stockpiling lithium ore at Sandawana mine, has been hauling some of it to a processing plant in Gwanda, owned by Chinese nickel and steel giant Tsingshan Holding Group.
Barnard said the targeted completion of the Sandawana lithium concentrator could coincide with a recovery in the price of the battery metal.
A surge in supply mainly driven by higher Chinese output has caused lithium prices to plunge nearly 90% over the past two years, forcing miners to halt projects and cut jobs.
However, analysts say those production cuts and robust electric vehicle sales in China could propel lithium demand above supply this year.
“Our forecast is that lithium prices will recover sometime in the year 2027, right at a point in time when we expect the concentration plant to be in production,” Barnard said.
Zimbabwe, Africa’s top lithium producer, has said it will ban the export of lithium concentrates from 2027 to push for more local processing.
By then, the government expects Zhejiang Huayou Cobalt and Sinomine to have completed facilities for further processing in the country.
Zimbabwe has attracted over $1 billion in lithium investments since 2021, primarily from Chinese battery metal companies.
Meanwhile, Kuvimba is also seeking $950 million in funding to develop its lithium, platinum, and gold assets.
