Mining ZimbabweLatest Mining News, Policy and Industry Updates

Bikita Minerals is expanding its annual spodumene processing capacity from two million tonnes to three million tonnes by the second quarter of 2027, as owner Sinomine steps up investment in lithium processing at the mine, Mining Zimbabwe can report.

By Ryan Chigoche

Thomas Mufumi, Deputy General Manager of Sinomine Bikita Minerals, said the expansion would increase the mine’s capacity by 50% as the company rolls out projects expected to take its total investment to about US$900 million by the end of 2027.

“Our spodumene processing capacity is currently around two million tonnes per year, and we are expanding that to three million tonnes by the second quarter of next year,” Mufumi said.

Sinomine has invested more than US$320 million in spodumene and petalite beneficiation at Bikita, with further spending planned on processing facilities, mineral recovery and power generation.

A major project is a US$400 million lithium sulphate plant scheduled for completion in July 2027. The plant will allow Bikita to process lithium concentrate further into lithium sulphate, an intermediate product used to manufacture battery materials.

The company is also investing more than US$60 million in an expansion and pre-concentration project, US$6 million in tantalite extraction and more than US$60 million in a 50-megawatt power station.

The projects are being developed as Bikita builds on a larger resource base. Mufumi said the mine’s lithium-bearing mineral resources had grown from about 29 million tonnes to more than 218 million tonnes since Sinomine acquired the operation, extending its projected mine life by more than 15 years.

The expansion has also increased employment at the mine. Direct workers now number about 1,400, up from roughly 300 previously, while more than 2,000 contractor workers are also engaged at the operation.

Bikita’s investment comes as lithium accounts for a growing share of Zimbabwe’s mineral export earnings. Figures presented by the Minerals Marketing Corporation of Zimbabwe during its lithium media tour showed lithium sales of US$2.159 billion in the first nine months of 2026, accounting for 45.6% of reported mineral export sales, excluding gold and silver.

The planned sulphate plant would take Bikita beyond its existing concentrate processing operations, adding another stage to the production of lithium materials in Zimbabwe as the company continues to expand its facilities.

Local and international financial institutions have expressed interest in financing the US$125 million Manhize-Mvuma railway project, with discussions expected to focus on a funding structure that spreads financing risk among participating lenders, Mining Zimbabwe can report.

By Rudairo Mapuranga

The 54-kilometre railway project, being developed by Grand Railway Solutions (GRS), a unit of Dinson Iron and Steel Company (Disco), is being implemented under a strategic cooperation agreement with the National Railways of Zimbabwe (NRZ).

GRS Director and Founder Linos Masimura said five local banks, including CBZ Bank and Ecobank, as well as the African Finance Corporation (AFC), had expressed interest in participating in the project.

“We have an expression from African Finance Corporation, which is an international bank, and we have also sent out expressions to other banks,” Masimura said.

“We have not yet broadcast that we require investors, but they just got to know about the project and started expressing interest. We have five local banks that have already expressed interest, including CBZ and Ecobank. We also have international banks.”

The interest comes as GRS plans to finance about 60% of the project’s US$125 million construction cost from its own resources, leaving approximately US$50 million to be raised externally.

Masimura said the bulk of the external financing would be directed towards imported equipment and materials, while GRS would meet much of the cost of civil works and local infrastructure from its own resources.

The financing structure is expected to be developed through discussions between the project developers and participating financial institutions, with the objective of spreading exposure among lenders rather than placing the entire financing requirement on a single institution.

The approach was also highlighted by CBZ Bank’s managing director, who said local financial institutions were prepared to collaborate on the project and determine an appropriate funding structure.

The model would be similar to arrangements used in financing large infrastructure and mining projects, where several institutions participate to distribute project and repayment risks.

Construction of the railway is expected to take about 12 months once the project is fully mobilised.

The line is expected to provide a dedicated rail connection between Manhize and Mvuma, strengthening the logistics chain supporting Zimbabwe’s steel and mining industries.

Once operational, the railway is projected to move about 600,000 tonnes of cargo annually, including coking coal and coke from Hwange to the Manhize steel plant and finished steel products from Manhize to domestic and export markets.

For the mining and steel industries, the project is expected to reduce reliance on road haulage for bulk commodities while improving the movement of high-volume cargo.

NRZ Acting Chief Executive Officer Ainah Dube-Kaguru said the partnership would also address some of the railway operator’s longstanding capacity constraints, particularly shortages of wagons and locomotives and the need to rehabilitate sections of its network.

“There is very much that you can do in terms of investment, and we will be able to repay the banks,” Dube-Kaguru said.

She said greater investment in rail infrastructure would allow the sector to handle substantially more bulk cargo while improving the efficiency of Zimbabwe’s logistics system.

Dube-Kaguru also highlighted the difference in carrying capacity between rail and road freight, noting that a rail wagon can carry about 54 tonnes of cargo compared with approximately 33 tonnes for a truck.

The shift of bulk cargo from road to rail is expected to reduce pressure on Zimbabwe’s road network while lowering the number of heavy trucks required to move industrial commodities.

Benson Xu, a director of Disco, said the partnership brings together the respective strengths of the three parties, with NRZ providing its railway infrastructure and expertise, GRS bringing investment and rolling stock, and Disco providing a significant cargo base through its steel operations.

The development is particularly significant for Manhize, where the growth of steel production is expected to generate substantial demand for reliable bulk transport.

The railway could also support wider development of mineral and commodity logistics infrastructure by improving the reliability of cargo movement between production centres, warehouses and markets.

GRS also intends to develop local capacity to maintain and refurbish rolling stock. Masimura said the company planned to repurpose a workshop used during construction of the Manhize steel plant for wagon refurbishment and, ultimately, the manufacture of new wagons locally.

The initiative could help address Zimbabwe’s longstanding shortage of functional rolling stock while creating additional industrial capacity around the country’s railway and mining sectors.

For financiers, the project’s potential cargo volumes and the involvement of an established industrial producer provide an important basis for assessing the project’s ability to generate revenue and service external financing.

However, while several financial institutions have expressed interest, the financing structure has not yet been finalised, meaning the project remains at the stage of lender engagement and financial structuring rather than a completed US$125 million financing package.

Bikita Minerals contributed about US$80 million in taxes in the third quarter of 2026 as stronger lithium prices lifted the value of its output, with the Sinomine-owned operation stepping up investment in local processing, Mining Zimbabwe can report.

By Ryan Chigoche

The contribution comes as lithium has emerged as the biggest driver of Zimbabwe’s mineral export earnings, with higher spodumene prices pushing lithium sales ahead of platinum group metals while producers expand processing capacity.

Speaking at an MMCZ lithium media tour, Thomas Mufumi, Deputy General Manager at Sinomine Bikita Minerals, said the higher tax contribution reflected improved lithium prices during much of 2026, although the market remained volatile.

“And as of the current quarter, we have earned a tax contribution of roughly US$80 million. This speaks to the improved prices we have been experiencing for the better part of 2026.

“However, it is important to appreciate that the lithium industry is not yet stable. There are still a lot of fluctuations in demand, supply and pricing, and these are reflected in the tax contributions,” Mufumi said.

The latest MMCZ figures underline the strength of the lithium market this year, with mineral export sales excluding gold and silver reaching US$4.735 billion in the first nine months, more than double the US$2.347 billion recorded in the same period last year.

Lithium accounted for US$2.159 billion, or 45.6% of mineral sales, overtaking PGMs at US$1.729 billion, while spodumene sales surged 368.2% to US$1.812 billion.

The average realised spodumene price rose to US$1,483 a tonne from US$387 in the same period last year, a 283% increase, while petalite sales reached US$155.29 million and lithium sulphate contributed US$190.52 million from 33,807 tonnes.

For Bikita, the shift is particularly significant. Spodumene has become the mine’s dominant export mineral as demand from battery-related markets has grown, while petalite production has remained relatively consistent but on an upward trajectory.

The stronger returns are now being accompanied by a push to capture more of the value within Zimbabwe.

Sinomine has invested more than US$320 million in spodumene and petalite beneficiation at Bikita, with completed investment reaching about US$323 million by 2026. Total planned investment is expected to reach about US$900 million by the end of 2027.

At the centre of the programme is a US$400 million lithium sulphate plant, which will take Bikita further downstream from concentrate production into lithium chemical processing.

The plant is targeted for completion in July 2027, followed by commissioning, as the company deepens its commitment to lithium beneficiation in Zimbabwe.

Bikita is also expanding its spodumene processing capacity from about two million tonnes a year to three million tonnes by the second quarter of next year.

The wider investment programme includes a more than US$60 million expansion and pre-concentration project, a further US$6 million tantalite extraction project and a 50MW power station costing more than US$60 million.

The expansion is reshaping Bikita from a predominantly mining operation into a more integrated processing business, with ore passing through separation, optical sorting and gravimetric processes to recover different mineral streams.

The mine’s resource base has also expanded sharply since Sinomine acquired the operation, rising from about 29 million tonnes to more than 218 million tonnes of lithium-bearing minerals and extending the projected mine life by more than 15 years.

That growth has been matched by a sharp increase in employment, with about 1,400 direct employees now at the operation, up from roughly 300 previously, while contractors take the wider workforce above 2,000.

With lithium now accounting for nearly half of MMCZ-marketed mineral export sales, Bikita’s investment in sulphate production and expanded processing capacity puts the mine at the centre of Zimbabwe’s push to move beyond concentrate exports and retain more mineral value locally.