Chinese mining group Zhejiang Huayou Cobalt has completed a full takeover of Zimbabwe’s biggest lithium operation, cementing control over a strategic asset as the country pushes miners toward greater local processing of critical minerals, Mining Zimbabwe can report.
By Ryan Chigoche
The company said in its results for the year ended 31 December 2025 that it has acquired the remaining minority stake in Prospect Lithium Zimbabwe, taking its ownership to 100% and securing full control over production, processing, and export decisions at the operation.
The transaction was valued at approximately US$32.11 million and included a premium of about US$12–13 million above book value, underscoring the strategic importance of the asset.
That control centres on the Arcadia Mine, about 30 kilometres east of Harare, which has quickly emerged as the country’s largest lithium operation. For Huayou, the project has shifted from a standalone mine to the core of a broader strategy aimed at capturing more value across the lithium chain.
The company has reinforced that shift through significant capital investment, committing roughly US$300 million to a concentrator and a further US$400 million to a lithium sulphate plant. Together, the facilities position Arcadia as an integrated hub capable of producing higher-value lithium products. A 50,000-tonne lithium sulphate plant has already been completed and entered trial production in the first quarter of the year.
Operational gains are beginning to show alongside the build-out. Additional exploration has expanded the resource base significantly, lifting lithium carbonate equivalent estimates from 1.5 million tonnes to 2.45 million tonnes, while ore grades have improved to 1.34%. The upgrades strengthen the long-term production profile of the project and reinforce its role within Huayou’s global supply chain.
The latest transaction, disclosed in results for the year ended 31 December 2025, was valued at about CNY219.18 million (approximately US$32.11 million). The price reflected a premium of more than CNY90 million above book value, an indication of the strategic importance attached to securing full ownership. The company said the premium resulted in a corresponding reduction in capital reserves.
Huayou also revealed that 45% of its equity in the Zimbabwean unit has been pledged as collateral for group financing, highlighting how large-scale mining investments in the country are increasingly tied into complex international funding structures.
The move completes a process that began in 2022, when Huayou entered Zimbabwe’s lithium sector through the acquisition of an 87% stake in the business from Australia-listed Prospect Resources for about US$378 million. Since then, the group has steadily increased both its equity position and its operational footprint.
Full ownership now places Huayou in a stronger position as Zimbabwe tightens its stance on mineral exports. Authorities have already restricted shipments of lithium concentrates, part of a broader push to force investment into local processing and retain more value within the country.
The economic gap remains stark. Industry estimates suggest Zimbabwe currently earns about US$375 per tonne from raw lithium exports, compared with as much as US$20,000 per tonne for battery-grade material.
As one of the world’s fastest-growing lithium producers, Zimbabwe has become increasingly important to global battery supply chains, particularly those linked to China. However, with Harare targeting a transition to exporting only processed lithium by 2027, operators such as Huayou are being pushed to accelerate downstream capacity—turning ownership control into a critical lever for navigating a rapidly shifting regulatory landscape.
