Kuvimba bets on price recovery with US$270 million...

Kuvimba bets on price recovery with US$270 million lithium project

Oscar J Jeke

Zim Now Reporter

Kuvimba Mining House is set to finalize a deal with two Chinese companies for a US$270 million lithium project at Sabi Star Mine in Buhera.

Amidst a backdrop of plummeting lithium prices, which have dropped over 80% since their peak in November 2022 due to oversupply and slower electric vehicle sales growth, Kuvimba's CEO Trevor Barnard expresses confidence in the market's rebound.

Barnard articulated the company's strategy, stating, "We expect prices to recover more strongly next year, although they were unlikely to reach the record levels seen in 2022. That was obviously a bubble driven by huge demand forecasts and huge positive sentiment around lithium." This optimism is anchored in the anticipated robust sales of electric vehicles in China and the strategic decision to mothball some mines, which analysts predict will stabilize lithium prices in the current year.

Zimbabwe, known as Africa's largest producer of lithium, has seen an influx of over US$1 billion in investments into lithium projects since 2021, predominantly from Chinese battery metal companies. Key players such as Zhejiang Huayou Cobalt and Tsingshan have been actively involved, with Huayou having acquired Prospect Lithium in 2022, and Tsingshan constructing the Dinson steel plant and Gwanda Lithium mine.

The partnership with Kuvimba will see the development of a 600 000 metric tons per year lithium concentrator at the Sandawana mine. "We did a review of the Sandawana project and we found that it is still a very good project to proceed with because of the quality of the resource and the size of the resource as well," Barnard explained, underscoring the project's potential despite the market's volatility.

Other Chinese companies like Sinomine Resource Group, Chengxin Lithium Group, Yahua Group, and Canmax have also acquired lithium assets in Zimbabwe, highlighting the strategic importance of Zimbabwe in the global battery metals market..