Despite a significant drop in lithium prices, Chinese mining giants Zhejiang Huayou Cobalt Co. and Tsingshan Holding Group Co. are pressing ahead with the development of a lithium deposit in partnership with Zimbabwean state-owned Kuvimba Mining House. The companies are conducting a feasibility study for a new mine and processing plant at Sandawana, located in southern Zimbabwe.
This partnership follows earlier announcements by Kuvimba Mining House regarding the project, which gained attention in July. Zimbabwe has emerged as a crucial player in the global lithium market over the past two years, driven by soaring prices in 2021 and 2022 that attracted substantial investment from Chinese firms eager to tap into the country’s abundant lithium resources.
However, since late 2022, lithium spot prices have plummeted by nearly 90%, largely due to a surge in supply that has not been matched by demand, particularly in the electric vehicle (EV) sector. Despite these market challenges, Huayou and Tsingshan remain committed to securing feedstock for their domestic refineries, indicating their long-term strategy.
The planned investment for the Sandawana project is projected to be between $250 million and $300 million, with expectations to produce around 500,000 tons of lithium concentrate annually. Trevor Barnard, acting CEO of Kuvimba, expressed optimism about the project’s financial viability, asserting that their economic model indicates profitability even at current pricing levels.
Looking ahead, Barnard anticipates a gradual recovery in lithium prices over the next year, with a more substantial rebound expected in 2026 and 2027 as the current production surpluses transition to deficits.
As lithium mining and exploration activities expand across Africa—spanning countries like Namibia, Mali, Ghana, and the Democratic Republic of the Congo—these initiatives remain relatively small compared to the scale of projects developed in the Americas, Australia, and Europe. Nevertheless, the continued investment in Zimbabwe reflects the country’s strategic importance in the evolving global lithium market.
In other news – Residents displaced after fire destroys Broadwalk Urban Village in Midrand
Residents of the Broadwalk Urban Village in Midrand are seeking refuge elsewhere following a devastating fire that swept through the complex on Tuesday night. Firefighters from the City of Johannesburg Emergency Management Services (EMS) were dispatched to the scene after receiving an emergency call around 9 PM.
According to Robert Mulaudzi, spokesperson for Johannesburg EMS, the blaze originated on the second floor and affected approximately 130 apartments. As flames engulfed the building, several residents were injured while attempting to escape and have since been transported to nearby health facilities for treatment. Read More