The government of Zimbabwe has pledged to support the Arcadia lithium project which is poised to become one of the country’s biggest lithium producers.
Rudairo Mapuranga
The project is in line with the National Development Strategy-1 and the US$12 billion mining industry by 2023 as the country moves towards the attainment of the upper-middle-income economy.
Speaking at the Prospect Resources’ Arcadia lithium binding agreement with Zheijiang Huayou Cobalt signing ceremony held at the statehouse today, Minister of State for Mashonaland East Providence Senator Appolonia Munzverengwi said the government was going to be supportive of the Arcadia lithium project ensuring that it is a success.
“As the government, we will take a keen interest to ensure the success of the project,” Senator Munzverengwi said.
President Mnangagwa said his government and cabinet were going to support the project ensuring that the lithium sector achieves a US$0.5 billion annual revenue by 2023.
“Rest assured that you have my government’s support to facilitate the unlocking of maximum value from this strategic mineral resource, for win-win benefits. Let us move forward with speed and make this venture a great success. With unity of purpose, we will prosper together and build a Zimbabwe we all want,” said Mnangagwa.
“I wish the parties to this Agreement success in the implementation of business transaction and declare this a positive step forward for Zimbabwe.” Dr Mnangagwa said.
China’s Zhejiang Huayou Cobalt will pay a total US$422 million to acquire the Arcadia hard-rock lithium mine in Zimbabwe.The move marks Huayou’s second foray into lithium, a key ingredient in rechargeable batteries, in the space of a week. It is the latest acquisition of overseas battery mineral resources by Chinese companies looking to shore up supply to meet demand from the burgeoning electric vehicle (EV) sector.
Huayou, the world’s biggest producer of cobalt, another battery metal, in 2020, said in a filing it would pay US$388.8 million for Australia-listed Prospect Resources Ltd’s 87per cent stake in Arcadia owner Prospect Lithium Zimbabwe.
It will pay another US$44.2 million for the 6per cent stake held by Zimbabwean professor Kingston Kajese and the 7per cent held by Tamari Trust, which previous Prospect filings show is linked to Paul Chimbodza, executive director of Prospect Lithium Zimbabwe.
