Great article, there is realy need to have leaders with a vision to see great oppotunities that lie ahead . To accept cookies, click continue. See why all of our clients are repeat clients with our exceptional service, attention to detail, and workmanship. Within the next year, the company plans to complete a pre-feasibility study, a definitive feasibility study and then a bankable feasibility study, he said. The project has annual production capacity of 4 million tonnes a year. "We need to change the narrative about value addition. To find out more about cookies and change your preferences, visit our, Why substantial Chinese FDI is flowing into Africa. Ian Lewis reports. We are a technology company that combines Low Voltage Cabling, Access Control, Speaker/Intercom Systems and Phone Services.
Another Chinese firm, Zhejiang Huayou Cobalt, recently purchased the Arcadia hard-rock lithium mine just outside Harare from Australia-listed Prospect Resources and other Zimbabwean minorities in a $422 million deal. Legislative oversight and robust implementation in filling policy gaps are therefore critical. Contact 2022 Glacier Media Group, All Rights Reserved. They have said that the mines lithium deposit could create $3 billion in exports. During the construction period, Prospect Lithium Zimbabwe will employ 600 local workers, which will be increased to 900 people once production begins. We use cookies on this site to understand how you use our content, and to give you the best browsing experience.
Huayou Cobalt has also sought to expand closer to home by investing in Indonesia to secure more sources of the other raw materials used for producing EV batteries. The Arcadia project is slated for commencing delivery of its first batch of production next year. From the perspective of the whole market, the demand for lithium batteries in the new energy auto industry is growing, which raises the price of lithium. As of October 2021, the Arcadia project had 15.8 million tonnes of measured lithium resources and 11.8 million tonnes of proven lithium reserves. Copyright 2015 - 2022, All Rights Reserved | African Mining Market. Prospect Resources, a listed company in Australia, believes that Zimbabwe has abundant lithium resources after exploration. Chinese electric vehicle battery giants are rushing to invest in Zimbabwe's lithium mines. PwC Cloud and Digital Transformation BrandVoice, 4 Steps To Help Your Kids Build Smart Money Habits, How To Earn Cash Rewards For Everyday Spending. It said at the time it would pay $377.8 million to lithium explorer Prospect Resources for its 87% stake in the mine and a combined $44.2 million to individual Kingston Kajese and family trust Tamari Trust for their 6% and 7% stakes, respectively. 2022 Deutsche Welle | The consequences of leaving corporations to their own devices are too dire to contemplate. About Us | The surge in global demand for electric vehicles and batteries has promoted the demand for minerals such as copper, lithium, graphite, and cobalt. Lithium is essential to these goals. Huayou Cobalt completed the acquisition of Arcadia in April 2022 from Australia-listed Prospect Resources and Zimbabwean minority shareholders for $422 million. The Mines and Minerals Act, which gives the President carte blanche over all mineral resources, is woefully inadequate as an arbiter of beneficial ownership and control. The rising price of lithium is already affecting the price of electric vehicles with Tesla significantly increasing its prices by as much as $6,000 this month. The construction of the HPAL project will begin at the end of this year, and is slated for completion within three years. Lithium deposits are a cornerstone to a shifting market for EV technology. CATL is a the producer of EV batteries globally. Three Chinese energy companies have snapped up controlling shareholdings in Zimbabwean lithium mines during the past four months, as China, the worlds biggest EV market, increasingly gravitates towards Africa to diversify the supply of lithium, one of the most sought after minerals used in the booming manufacture of electric vehicles (EVs). The company would also carry out trial mining using the pilot plant at some point, he added. We are proud to feature special A/V installation, sourcing, maintenance and service coverage for Barrow, Bartow, Cherokee, Clarke, Clayton, Coweta, Dawson, Dekalb, Forsyth, Gwinnett, Henry, Oconee, Paulding, Pickens Rockdale, and Walton counties, and the greater Metropolitan Atlanta Area. In 2013, Zimbabwe exported 40.9 million tons of lithium ore products and got $57 million in foreign exchange. Accessibility Statement | Zimbabwe is not new to lithium mining -- it exported 1,200 mt of lithium concentrate in 2021, Garacho told S&P Global. The company has already raised $6 million internally and requires the bankable feasibility study to raise funds elsewhere, he said. We are proud to have worked with many manufacturers and vendors throughout the Southeast to provide the highest quality products and services available to our customers. The US$422 million lithium deal has attracted significant media attention and mixed public sentiment. Zimbabwe possesses Africas largest lithium reserves and the fifth largest globally but the resource has remained largely untapped due to a lack of investment. Just as investing in Africas lithium sector is beneficial to China, African countries stand to benefit from Chinese investment through job creation, taxes, the transfer of technology, and significant funding, which all help to develop Africas mining industry, he adds. Prosper Chitambara, senior research economist of the Labour and Economic Development Research Institute of Zimbabwe, says the investment is an important development for Zimbabwe with significant multiplier effects including employment creation, contribution to fiscal revenues and foreign currency generation through exports. Archie Mathibela is a Communications Consultant based in Harare. Contact. Under the background of the active development of electric vehicles and electric energy in the world, lithium ore is becoming an indispensable raw material for the industry and it is becoming a hot mineral resource. Along with this comes high supply chain risks as there are concerns linked to the DRC regarding political stability, labour issues, corruption and transparency. Battery metal specialists say the drive for clean technology initiatives and off-grid power storage has created an enormous demand for lithium batteries and electric vehicles in recent years. Atlanta, GA 30315. The world has launched a war for lithium resources after the oil and rare earth, in view of the importance of lithium to the future energy-battery, lithium is known as white oil and it is an important mineral, which is mainly used for the production of lithium batteries and ICT products. This has prompted an increase in demand for production at mines inZimbabwe, hometo large deposits of the element. The drilling was currently taking place in Bikita, and Garacho said Zerttew's early exploration program would determine targets of where drilling would be done, adding that geologists had been taking samples and had drilled a few core holes that had already been sent to the laboratory. The mine has a total area of approximately 900 hectares and PSC holds a 70% interest in the Arcadia Lithium Mine. Zhejiang Huayou Cobalt is another key player in Zimbabwe's lithium extraction industry. Chengxin paid $76.5 million last November for 51% of a company which owns lithium and rare earth mineral blocks in Zimbabwe. Many Zimbabwean communities have been left counting their losses in the wake of projects hailed as progressive and beneficial for local communities. But, most importantly, we stand by our work! Carbon credits conundrum: Whats left for countries hosting carbon projects as VCMs develop? Take a look at the beta version of dw.com. Our security solutions can keep you apprised of everything that's happening in your facility, in real-time, Also known as Structured Cabling, we have the ability to design, install, repair, and maintain your office data systems. Max Mind owns 40 mining claims of rare metal ore blocks in Zimbabwe, with a total surface of 2,637 hectares. In this way, African countries also stand to improve the extent of gains they have been making from Chinese investment in the coming years, says Chowdhury. Contact, info@UptimeAuthority.com These deals can facilitate technology transfer to African countries and enhance their preliminary industrial process capacity in the coming years Financially, these resource exports can be particularly crucial to relieve the debt service pressure in the short run as the price of lithium has been and is expected to continue to rise sharply in the coming years, he tells African Business. The southern African country holds some of the worlds largest deposits of lithium, a key battery mineral, and hopes for an economic boost from a global drive towards clean energy. Zimbabwe actively promotes the development of lithium mines as a magnet for attracting investors, and it also drives the vigorous development of mining equipment . Chinas Sinomine Resource Group on Friday launched a $200 million project to build a plant and expand existing mining operations at its recently acquired Bikita lithium mine in Zimbabwe. Kenyas Safaricom remains East Africa's highest ranking company in our survey of Africa's Top 250 Companies but falls from #9 last year to #12 this year. Lithium-ion battery producer Zhejian Huayou Cobalt followed in December by purchasing an 87% stake in Zimbabwes Arcadia Lithium Project for $528m from Australias Prospect Resources. The African Mining Market offers insights into key market and commodity trends, in-depth analysis of resources and prospects and licensing and policy decisions affecting the mining industry in Africa. Zimbabwe's government hopes to transition the nation into an upper-middle income economy by 2030 andthe mining industry has been slated by the government as a key component to realizing this vision. Rising demand for environmentally friendly transport is boosting sales of electric vehicles (EVs) and the lithium-ion batteries that power them. In 2019, the Reserve Bank of Zimbabwe estimated diaspora remittances at US$1.4 billion with greater upside potential. Materially change communities for the better would be a good start. Regulatory institutions should be more vigilant in granting necessary approvals contingent on investors fulfilling certain obligations that further local community interests. Developing sustainable agriculture in Africa, Africa Digital Banking Transformation Report, Workers report "colonial-era" abuse at Congolese cobalt mines, Bollor exit and pandemic impact shake up Africas transport and logistics, ESG case study: South Africas SA Taxi attracts new set of investors, Safaricom leads ranking of East Africas Top 20 companies, Opportunities for Africa in electric vehicle market, Zimbabwe upgrades vital transport infrastructure. The key question is how African countries can benefit from the abundance of lithium as a relatively new strategic resource in the foreseeable future while avoiding the so-called resource curse. "We don't see ourselves taking more than a year to get our pilot project on site -- to refine whatever we've got from concentrate into pre-final product before it becomes a battery," Garacho said. Arcadia Mining is expected to reach an annual production of 2.5 million tons of lithium ore after the mine is deployed. The latest mining acquisition highlights the urgency of the governments responsibility to ensure that those who lost their lives fighting for generational prosperity did not make sacrifices in vain. Currently there is barely room to manoeuvre. There is very limited African cobalt production outside the DRC, he says. "Zimbabwe has historically been mining lithium for the past 50 years and it's only now that the world is gravitating to alternative solutions for batteries, lithium included," he said. Other cables have limitations on how far they can carry bandwidth. Home | Chengxin Lithium tells African Business that the investment in Zimbabwe an attractive investment destination for Chinese new energy companies will increase the leading lithium compound producers lithium resource reserve, guarantee the company with resource supply for capacity expansion, especially abroad, and further enhance its competitiveness in the industry of lithium new energy material. Save my name, email, and website in this browser for the next time I comment. The content of lithium in the earths crust is about 0.0065%, and there are more than 150 kinds of known lithium-containing minerals, mainly in the form of spodumene, lithium mica, lithium feldspar, and mayenite. Despite past failed attempts arising from inconsistent government policies, leveraging the diaspora community is worth another shot. Additionally, while the intermediate processing is mostly done where the cobalt is mined, mainly in the DRC, this is then exported overseas for refining. 404.216.9426 Is It Better To Lease Or Buy A Car In Summer 2022? A major mining company in Zimbabwehas agreed to start shipping a lithium-containing rock called spodumene concentrate from its facilitiesto China next year. According to data from market research institutions, the market price of domestic battery-grade lithium carbonate rose by 47.54% in 2017, approaching the high price of 180,000 yuan per ton. Services The Lithium Technical Development Center was built to demonstrate the chemical process designed for the companys Thacker Pass lithium project in Humboldt county. We expect to benefit from the rapid development of the Pomalaa project, as Huayou will carry out the initial investment, Bernardus said. Your email address will not be published. The government plans to open a lithium ore processing plant in Bulawayo to increase the added value of lithium mine products to boom the economy, said Mr. Valentine Vera, Director of the Metallurgical Division of the Mining Department of Zimbabwe. Uptime Authority's turnkey solutions and single-point service options save our clients time and money, while allowing us to manage and coordinate every aspect of the procurement and installation process. Environmental disasters and negligible financial benefits including through transfer pricing, and other licit and illicit financial leveraging instruments, remain a substantial risk. Electric vehicles are about to reach tipping point in market penetration globally, and as a result investment in battery technology and production is rapidly rising. Due to the high power ratio of lithium batteries, lithium batteries are widely used as power for electric vehicles, making lithium mines the hottest minerals in the lithium battery manufacturing industry. Ukraine, Russia likely to sign deal to resume Ukraine's grains exports, Turkey says, Commodity Prices and Essential Market Data, S&P Global Commodity Insights Abuja Oil & Energy Forum, Electric Power | Energy Transition | Metals. 1316 Lakewood Ave SE, Suite L-1 Last June, another Chinese company, Ganfeng Lithium partnered Firefinch of Australia to develop the Goulamina lithium mine in Mali, but the project faces an unstable political environment in the country. Vale Indonesias chief financial officer, Bernardus Irmanto, said to Forbes Asia that Huayou Cobalt is preparing studies related to, among others, power supply, water supply and tailing process, which will be held within six months. For instance, Prospect Resources was granted national project and special economic zone status, amongst other incentives. We guarantee our products, materials, and installation to be of the highest quality available anywhere, and offer warranties with all of our services. You can find more information in our data protection declaration. Yet other avenues should be sought, such as pushing for local communities to achieve devolution and create localised economies independent of patronage networks. As such, the lithium deals would provide good opportunities to see how these new policy documents are implemented on the ground, particularly in comparing Chinese-owned and jointly-owned (with Australian partners) mines. This begs the question: why the lethargy in amending an old statute to empower locals in a legislature run by natives, 43 years after independence? Prospect Lithium Zimbabwe, the holding company of the Arcadia project, will use the investment to rapidly develop the lithium mine and construct a plant with a processing capacity of 4.5 million tonnes of ore and a production capacity of 400,00 tonnes of lithium concentrate per year. However, the ultimate goal of Zerttew is to mine, manufacture and sell lithium-ion batteries from Africa. Lithium is an essential component in the manufacture of batteries for electric vehicles. Apart from EVs, another key reason for the rising usage of lithium-ion batteries is the growth in renewable energy production, the firm said in the report. A critical piece of transporting high bandwidth speeds across large business environments. At present, the disparity between Africas contribution of raw materials to some of the worlds most lucrative industries compared with the value chain benefit is unsettling, with the DRC, for instance, currently supplying 70% of the worlds cobalt used in electric vehicle manufacture but capturing only 3% of the battery and EV value chain. Zerttew is not the only company looking to extract lithium from Zimbabwe. Resource nationalism can take several forms, including renegotiation of existing mining contracts to get better terms, increase in taxes/royalties on the mining sector, asset nationalisation (forced equity transfers or the threat of them), in-country beneficiation, or export restrictions. Home Huayou is mining lithium, a vital element in rechargeable batteries, for the second time in less than a week. Zulu lithium mines is a subsidiary of Premier African Minerals. In early 2022, Chinese company Zhejiang Huayou acquired controlling rights to Zimbabwes Arcadia mine, an Australian majority-owned emerging energy minerals company controlled by Prospect Resources. Goromonzis Arcadia lithium project is led by the Australian company- Prospect Resources, which will employ more than 700 people in the first phase of the project and promote the construction of surrounding roads, housing, and schools.