Arcadia to commence production first quarter of 2023
Hongkong Stock Exchange-listed battery metal producer, Zhejiang Huayou Cobalt through its newly acquired company, Prospect Lithium Zimbabwe (PLZ) plans to commence production at its Arcadia lithium Project in Goromonzi during the first quarter of 2023, PLZ General Manager Haijun Zhu said.
Rudairo Mapuranga
In May, PLZ announced that it was going to invest $300 million on the rapid development of the lithium mine and processing plant at its Arcadia project with construction currently underway. The company that was contracted by PLZ to construct the processing plant Crec9 said it will finish construction of the processing plants and other buildings by the end of the year.
Speaking to Mining Zimbabwe Zhu said his company as it was prepared to contribute significantly towards the attainment of the US$0.5 billion lithium industry which was going to commence production during the first quarter of next year.
“The first season of next year we will start production,” Zhu said.
PLZ processing plant at the Arcadia Lithium project will have the capacity to treat around 4.5 million tonnes of ore and produce 400,000 tonnes of lithium concentrate per annum.
Huayou, one of the world’s biggest producers of cobalt, early this year completed a US$$422 million purchase of the hard-rock lithium mine just outside Harare (in Goromonzi) from Australia-listed Prospect Resources and other Zimbabwean minorities.
Zimbabwe is determined to benefit significantly from the popularity of lithium as it eyes becoming the world’s biggest “white gold” producer after 2023.
With the world superpowers committed to phasing out new gasoline and diesel engine vehicles by 2040, the recent growth in electric vehicle (EV) adoption has fueled a global boom in lithium production.
The adoption and rise in popularity of EVs and the world looking forward to clean energy has resulted in world lithium production increasing significantly between 2016 and 2020, up from 40,000 tonnes to 86,300 tonnes.
Currently, three countries, Australia, Chile, and China are accountable for 86 per cent of the world’s lithium production. Between 1995 and 2010 Lithium production grew steadily, up from 9,500 tonnes to 28,000 tonnes. But the advent of rechargeable batteries and electric vehicles brought in a new wave of demand, fueling an exponential production surge.
Australia currently is the world’s biggest lithium producer accounting for 46.3 per cent of the total lithium production, 40,000 tonnes.
According to the Deputy Minister of Mines and Mining Development Dr Polite Kambamura, the government’s thrust is to overtake Australia as the biggest lithium producer in the world.
He said that the value addition of lithium is important as the country seeks to maximize and get a true value for its lithium.
“We look forward to becoming a world leader in Lithium production. Government’s main thrust is on local Lithium value addition and beneficiation.” Dr Kambamura said.
In 2021 the country was the 6th biggest lithium producer in the world after Australia, Chile, China, Argentina and Brazil with only Bikita Minerals in production.
The production of lithium in Zimbabwe amounted to 1,200 metric tons in 2021. Figures have fluctuated in the period of consideration, with peak production of 1,600 metric tons recorded in 2018 and a low of just 417 metric tons in 2020.