Kuvimba Advances Talks with New Investors for Sandawana
Kuvimba Mining House (KMH) is closing in on a partnership with new investors for the Sandawana lithium resource as they target to commence concentrate production by the end of next year.
By Patricia Rwafa
The company, which is under the Mutapa sovereign wealth fund, estimates it has a lithium ore resource of 38 million tonnes at Sandawana, sparking investor interest.
To develop the resources and build a processing plant, Kuvimba would need up to $300 million.
It was previously reported that the British company Cluff Resources was interested in the Sandawana resource, having already met with Kuvimba.
Speaking to the press ahead of a tour of its Freda Rebecca Mine, CEO Trevor Barnard said that talks with other investors are progressing rapidly.
“We are in advanced talks with potential investors for the project, but their identities are being kept confidential. We expect to start lithium concentrate production by the end of 2025,” he said.
Lithium prices fell by up to 80% from their 2022 peak, leaving many stalled projects in their wake. This also slowed down investment into new mines, including in Zimbabwe. To make itself more attractive to potential investors, Kuvimba is doing more exploration and expects to update to a lithium resource of 100 million tonnes.
The initial stage targets the production of 500,000 metric tons of spodumene concentrate, a key form of lithium.
Kuvimba recognizes the importance of PGMs, which include platinum and other valuable metals. To tap into this potential, Kuvimba is teaming up with multiple investors. By working with these investors, Kuvimba is making a strategic move to become a player in the PGM industry in Zimbabwe.
Kuvimba operates under four clusters: gold, bulk commodities, PGMs, and energy.
Under gold, the company operates the Shamva mine, which has produced 2.3 million ounces of gold over the years. Freda Rebecca Mine, a mechanized underground and open pit, is estimated to have about five more years of gold reserves. The company also operates Jena Mine.
Under bulk commodities, Kuvimba mines iron and chrome in large volumes, particularly across the Great Dyke region of Zimbabwe. To maximize production,