Kuvimba Partners with Chinese Firms for Sandawana, No Equity Stake for Chinese Firms
Kuvimba Mining House (KMH), owned by Zimbabwe’s Mutapa Investment Fund, has partnered with Chinese firms Zhejiang Huayou Cobalt Co. and Tsingshan Holding Group Co. to develop the Sandawana lithium project.
By Rudairo Mapuranga
Notably, the two Chinese companies will not hold equity in the project but will transfer ownership back to Kuvimba after recouping their investment over a minimum of five years. This unique partnership, despite low lithium prices, is poised to position Zimbabwe as a key global player in lithium production.
The Chinese firms, which already have lithium operations in Zimbabwe, are collaborating with Kuvimba on a study to finalize the construction of a mine and processing plant at Sandawana, located in southern Zimbabwe.
These companies, already operating lithium projects in Zimbabwe, will work with Kuvimba to conduct a comprehensive study before moving forward with the construction of the mine and processing plant at Sandawana. Trevor Barnard, acting CEO of Kuvimba, confirmed that this partnership, first announced in July, is part of Zimbabwe’s ongoing efforts to capitalize on its rich lithium deposits, despite challenging market conditions.
The project is estimated to cost between $250 million and $300 million, with the aim of producing about 500,000 tons of lithium concentrate annually. According to Barnard, a full feasibility study, expected to be completed in the coming months, will finalize the project’s cost and output capacity. He emphasized that while lithium prices have dropped sharply since late 2022, Kuvimba’s projections show that the venture will remain profitable even at current price levels, with expectations of a strong price recovery by 2026.
Zimbabwe has rapidly emerged as a key player in the global lithium market, driven by a surge in investments from Chinese companies, including Huayou and Tsingshan. A Huayou subsidiary has already invested more than $700 million in the Arcadia lithium project, while Tsingshan has developed a smaller project in Gwanda. Zimbabwe is expected to account for about 10% of global lithium supply this year.
The Sandawana lithium project, formerly the site of an emerald mine operated by Rio Tinto Plc, is set to become Zimbabwe’s largest lithium producer. Kuvimba plans to complete the construction of the lithium processing plant by the end of 2025. Additionally, Kuvimba is in discussions with other investors for two earlier-stage projects at Sandawana that require further exploration.
As global demand for battery metals continues to grow, Kuvimba’s partnership with Huayou and Tsingshan positions Zimbabwe as a major player in the global lithium supply chain.