Huayou officially takes over Arcadia lithium mine
Arcadia lithium has officially been handed over to its new owners, Zhejiang Huayou Cobalt Co., Limited, a move that will catapult Zimbabwe’s bid to become a significant lithium concentrate producer in the world, while putting Zimbabwe on a strategic path in the promotion of the world’s new energy revolution.
Rudairo Mapuranga/ Prince Sunduzani
The Shanghai stock exchange-listed, new owners, have pledged to enhance their activities in the country in line with Zimbabwe’s drive to grow its mining economy significantly through enhanced production.
They have vowed to hit the ground running and are expecting to begin production soon, although no specific date was mentioned.
The company is eying becoming one of top tier players in lithium mining industry as the world is rapidly shifting towards clean energy.
As they take over, they have pledged to continue working with the people of Zimbabwe while developing sustainable livelihoods in their host country.
The signing was held on Wednesday and was graced by the Minister of, Mines and Mining Development Winston Chitando, and Company officials from both Prospect Resources and Hauyou.
Arcadia lithium mine is estimated to produce 300,000 – 500,000 tonnes per annum (tpa) of lithium concentrates during its mine life.
The company’s Excutive Vice Chairman George Fang said: “On December 22 last year, Huayou signed an agreement with Prospect to acquire the Arcadia project. After 4 months of joint efforts by the teams from China, Zimbabwe and Australia, the transaction has all conditions precedents satisfied or waved to close today. This is a gratifying, exciting and inspiring millstone. We are well aware that the closing of the transaction is inseparable from the hard work of Prospect and the great contributions of all of you. Thank you for your understanding, support and help in this journey so far.”
“Through you, Honourable Minister, please convey our heartfelt gratitude to His Excellency, The President of Zimbabwe, Dr E. D. Mnanqaqwa for his vision and leadership to transform Zimbabwe into a middle-income country by 2030.
Through this project, Honourable Minister, we are ready to contribute to the 12 billion dollars revenue by 2023.”
Commenting on the transaction, Prospect managing director and CEO Sam Hosack said: “Huayou’s pedigree as a leading electric vehicle battery precursor and cathode materials producer opens up opportunities in Zimbabwe and supports our strategy both in Zimbabwe and the broader sub-Saharan region.
“The transaction, being the culmination of years of effort progressing and developing the Arcadia Project to this point is a testament to the skills and expertise of the Prospect team, who are now firmly focused on the path ahead, to build the next iteration of Prospect, a developer of lithium and battery and electrification metals projects.”
In December 2021, Zhejiang agreed to purchase a 100 per cent stake in the Arcadia hard-rock lithium mine in Zimbabwe from Prospect Lithium Zimbabwe.
Located near Harare, the Arcadia project is considered one of the world’s biggest hard rock lithium resources.
Speaking to Mining Zimbabwe at the sidelines of the event Minister of Mines and Mining Development Winston Chitando said the government has blessed the takeover of Arcadia lithium by Zhejiang Huayou Cobalt which will see the mine increase production.