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AIM-listed mining and exploration junior, Premier African Minerals Limited, has announced the commencement of the second phase of test runs at its Zulu Lithium and Tantalum Project in Fort Rixon, scheduled to begin today, as the company continues its long journey toward achieving steady-state production at one of the country’s most anticipated lithium operations, Mining Zimbabwe can report.
By Rudairo Mapuranga
According to the latest update, all Original Equipment Manufacturers (OEMs) are now on-site to guide the plant’s optimisation efforts. Key operating parameters—including reagent dosing, flow controls, and minor mechanical adjustments—will be finalised during this phase.
According to Premier CEO George Roach, plant personnel and OEMs have been conducting inspections and maintenance, alongside implementing a minor change in the spodumene flotation section.
“Some operating parameter changes and the possible reintroduction of an additional reagent successfully used in 2024, to the extent necessary, round out the preparations,” Roach stated. He added that the company remains hopeful that the improvements will mark another “major step forward” in the optimisation process.
The company’s goal is to reach a consistent 22-day-per-month operating availability, which it believes is essential for meeting its projected spodumene concentrate production levels.
Ongoing Optimisation — But At What Cost?
While Premier has painted an optimistic outlook in its latest RNS, the path to full production has been long, winding, and fraught with delays. From multiple test phases to repeated optimisation work, the Zulu project has yet to reach the output levels initially promised when construction commenced.
In a 1 August 2024 update, Premier stated that no major plant equipment changes were required, and test work was focused on fine-tuning chemical dosing, agitation speeds, slurry densities, and cell residence times. These adjustments were aimed at achieving the required recovery and concentrate grades. At that time, Enprotec—the supplier of the flotation plant—had committed to completing all laboratory work to support the recommencement of operations. Yet, one year later, Zulu has still not entered steady commercial production.
Roach acknowledged in earlier comments that the true optimisation work only began after the commissioning of a new mill and scrubber in Q1 2024. Despite progress, frustration remains visible in the subtext of these updates. This raises questions: Why has the optimisation taken so long? Have earlier commissioning and design stages contributed to current delays?
Financial Manoeuvring Amid Delays
Beyond technical hurdles, Premier African Minerals is also contending with serious financial challenges. As reported in February 2025, the company failed to complete a US$4 million fundraising effort as initially structured. The retail offering, which was supposed to raise significant capital from existing shareholders, did not meet expectations.
To manage its obligations, Premier opted to pay US$300,000 in contractor invoices through the issue of over 1 billion new ordinary shares, further increasing the company’s share capital to nearly 40 billion shares. While this move averted immediate cash pressures, it also deepened concerns about shareholder dilution and the company’s ability to attract conventional funding.
This decision followed a previously cancelled fundraising initiative that aimed to raise £3.5 million through a placing and a retail offer, but managed just £1.2 million before being scrapped. With the project still requiring additional capital to move into production, the question lingers: can Premier continue to rely on equity financing to keep Zulu afloat?
Canmax Remains Committed — For Now
In the face of these financial and operational headwinds, Premier’s relationship with its strategic partner Canmax Technologies Co., Ltd has provided a critical lifeline. In January 2025, Canmax reaffirmed its commitment to support the completion of the Zulu flotation plant under an amended offtake and prepayment agreement.
The Chinese tech company made it clear that its involvement is limited to securing spodumene concentrate under agreed specifications and not to pursue control or ownership of the project. George Roach has continuously expressed confidence that the partnership with Canmax will help finalise the project’s commissioning, but even this alliance is not immune to market impatience and unmet delivery timelines.
Premier African Minerals has consistently framed each update as a step forward in a highly complex process. Yet, from a broader perspective, investors and stakeholders are justified in asking hard questions:
Why has full optimisation taken more than a year post-plant commissioning?
How sustainable is Premier’s current funding model, especially with heavy reliance on share issuance?
Can the company meet the prepayment obligations made under its agreement with Canmax?
The importance of the Zulu project—Zimbabwe’s flagship lithium development—cannot be overstated, particularly as global demand for lithium continues to surge. However, after years of updates, test runs, and incremental improvements, observers are left wondering whether Premier is truly nearing the finish line or if the goalposts will continue to shift.
As the second phase of test runs begins, all eyes will remain fixed on Zulu—and whether it can finally shift from potential to production.
