KUVIMBA Mining House will start construction of a lithium concentration plant at its Sandawana mine in Zimbabwe during the third quarter, with operations expected to begin in early 2027, said Reuters citing the miner’s CEO, Trevor Barnard.
The 600,000 ton annual capacity facility represents a $270m investment involving two unnamed Chinese metals companies. Under the partnership arrangement, the Chinese firms will construct and operate the concentrator for a minimum five-year period before transferring ownership to Kuvimba.
“We are finalising remaining agreements and ensuring compatible industry conditions for our partner to start construction,” Barnard said. He declined to identify the companies whilst negotiations continue. Ground-breaking is scheduled for the third quarter, he said.
Kuvimba has been accumulating lithium ore at Sandawana whilst transporting portions to a Gwanda processing facility operated by Chinese conglomerate Tsingshan Holding Group. Barnard said the plant’s completion could align with battery metal price recovery following a dramatic market downturn.
Lithium prices have plummeted nearly 90% over two years due to Chinese oversupply, forcing miners to suspend projects and reduce workforce, said Reuters. However, analysts predict production cuts combined with robust Chinese electric vehicle sales could create supply shortages this year.
“Our projections indicate lithium prices will recover around 2027, precisely when we expect the concentration plant to start production,” Barnard said.
Zimbabwe, Africa’s leading lithium producer, plans to prohibit concentrate exports from 2027 to encourage domestic processing. The government expects Zhejiang Huayou Cobalt and Sinomine to complete advanced processing facilities by then, said Reuters.
