Key facts
- Mutapa Energy Resources secured $300 million from Chinese entities for lithium mine development.
- Zhejiang Huayou Cobalt now holds 100% ownership of Prospect Lithium Zimbabwe (Arcadia Mine).
- Huayou Cobalt acquired the remaining stake in Prospect Lithium Zimbabwe for approximately $32.11 million.
- Zimbabwe aims to ban exports of lithium concentrates from 2027 to promote local processing.
- A new lithium plant at the Sandawana site is planned with an investment of up to $300 million.
Zimbabwe's state-owned Mutapa Energy Resources has secured $300 million from a consortium of companies, including Chinese entities, to develop its lithium mining facilities. Mutapa Energy CEO Innocent Rukweza confirmed the deal, though he withheld the names of the involved firms pending regulatory disclosures.
In a separate development, Chinese resources group Zhejiang Huayou Cobalt has assumed 100% control of Prospect Lithium Zimbabwe, the country's largest lithium operation, also known as Arcadia Mine. Huayou Cobalt acquired the remaining minority stake for approximately $32.11 million, consolidating its ownership after initially purchasing an 87% share in 2022 for $378 million. The company has since invested significantly in downstream processing, including a concentrator and a lithium sulphate plant.
Meanwhile, Kuvimba Mining House, a Zimbabwean state-owned entity, is collaborating with Chinese investors, including Zhejiang Huayou Cobalt and Tsingshan Holding Group, on a new lithium project at the Sandawana site. A feasibility study is underway, with plans to raise as much as $300 million for development. Kuvimba CEO Trevor Barnard indicated that construction could commence soon after the study's completion, expected before March of the following year. The Sandawana facility aims to produce up to 500,000 tonnes of lithium concentrates annually, with a high-grade ore of 5.5%, and is slated to begin operations in the first half of 2027.
These developments occur as Zimbabwe seeks to increase local beneficiation of lithium. Authorities have implemented measures, including a ban on exports of raw lithium concentrates (partially lifted for some operators), to compel miners to invest in domestic value-addition. This policy shift aligns with integrated mining-to-chemicals models favored by large operators like Huayou Cobalt, while posing challenges for smaller, less capitalized local miners.