Firm mulls value-addition lithium operation in Zim

Zim Now Writer

United Kingdom-listed firm, Marula Mining, has plans to set up a value-addition lithium operation Muchai Mining in Bikita, Masvingo Province, the company’s chief executive officer, Jason Brewer has said.

Muchai Mining was established to focus on the fast-growing battery metals sector and the subsidiary will secure advanced lithium and copper mining and development opportunities in the country.

Brewer told international media that Marula Mining was currently piloting a process for value-added lithium in South Africa and the plan would be extended to Zimbabwe, where the company has lithium
projects under consideration, as well as to Zambia and Tanzania.

This comes as several stages of refining are needed before the spodumene concentrate from mines is ready for use as lithium in electric car batteries.

In a circular issued on December 20 last year, and in terms of the Base Minerals Export Control Act, Mines and Mining Development Minister, Winston Chitando, said: “No lithium bearing ores, or unbeneficiated lithium whatsoever, shall be exported from Zimbabwe to another country.”

The ban will “ensure that the vision of the president to see the country becoming an upper-middle income economy has been realised,” it added.

The Zimbabwe Miners Federation, a lobby group for artisanal and small-scale miners, called for the ban to be lifted for six months, saying that existing offtake agreements have been prejudiced.

The ban, the federation says, has led to a stockpile of nearly two million tonnes of lithium ore.

Brewer is convinced governmentʼs decision to ban raw exports is the right one, saying Zimbabwe must avoid becoming like Western Australia, where iron ore is extracted and shipped without any value addition.

“They are not interested in seeing merely a hole in the ground. They desire to witness construction,” he said.

He stated that it is reasonable for countries to seek to go up the value chain because Africa now possesses some of the worldʼs highest grade and highest value mineral projects.

“Itʼs only going to happen if countries take decisions like Zimbabwe,” Mr Brewer said.

“You have to give a nudge in the right direction.”

Muchai Mine is owned 80 percent by Marula Mining, which also nhas operations in Tanzania, South Africa and Zambia, and local company, Gondo Mineral Resources Ltd, holds the remaining 20 percent.

Brewer said “The decision to establish Muchai Mining is the result of extensive due diligence and careful consideration of various opportunities in the region.

“Our team has been on the ground since the beginning of the year, and we are excited about the potential that Zimbabwe offers the company and the industry.

“With Marulaʼs experience and expertise, combined with our local partnersʼ knowledge and experience in the country, we believe Muchai Mining is well positioned for success,” Brewer said.

This comes as lithium demand has grown substantially across the world, amid the push to transition to a climate-friendly electric car, with petroleum-powered internal combustion engines among the biggest polluters of the environment.

Lithium is expected buoy government’s plans to achieve a US$12 billion mining economy by end of this year, with the capacity to generate at least US$500 million annually.

There has been massive interest from foreign companies, especially from China, to invest in Zimbabweʼs lithium sector, with Huayou, acquiring Arcadia Mine, in Goromonzi, near Harare, from Australia-listed mining firm Prospect Resources in a US$422 million deal in 2022.