Lithium Miner Heeds Value Addition
A Chinese billionaire and a South African firm have partnered to establish a lithium processing plant in Mutoko, Zimbabwe as a result of the government’s ban on exports of lithium ore and unpurified salts. The plant is expected to produce two million tonnes of lithium concentrate per year.
Last month, the government implemented a ban on exports of lithium ore and unpurified salts, with the exception of ore samples sent for analysis.
The ban requires that mineral exports be refined or beneficiated within Zimbabwe to meet international trade standards, adding value to the country’s finite mineral resources and creating jobs.
The chairperson of Suzhou TA & A Ultra Clean Technology, Mr. Pei Zhenhua, has signed a joint venture with Mutoko Lithium (Private) Limited to establish a plant that will produce two million tonnes of lithium concentrate per year. Mr. Pei’s company already has mining interests in various countries including Zimbabwe, the Democratic Republic of Congo, and Nigeria.
Mr. Pei’s companies are listed on stock exchanges in China and Australia, among other countries, where he holds majority and minority equity. This multi-million dollar investment in Zimbabwe is a sign of continued confidence in the country’s second republic, led by President Mnangagwa, whose policies have unlocked many opportunities for investment.
Both parties confirmed that the investment in the lithium processing plant was a result of their confidence in the economic environment in Zimbabwe. The Chinese partner, Suzhou TA & A Ultra Clean Technology, holds a significant share of the lithium battery market and has a strong demand for the mineral due to the increasing use of electric vehicles and the shift towards clean technology.
The joint venture will produce two million tonnes of lithium concentrate per year, and negotiations between the two parties have been smooth. They are committed to putting the plant into production as soon as possible. Mr. van de Spy, the leader of Mutoko Lithium, stated that they find Zimbabwe an attractive country due to its abundance of resources and human capital.
Mr. Pei, the leader of Suzhou TA & A Ultra Clean Technology, stated that they are committed to complying with Zimbabwean laws in regards to the joint venture and their investment in the country.
Mr Pei, the leader of Suzhou TA & A Ultra Clean Technology, stated that the company arrived in Zimbabwe on January 11 and has an existing investment in Bulawayo that is performing well.
He expressed that the company has confidence in making investments in Zimbabwe and has successfully signed a contract to build a two million tonne lithium processing plant in the Mutoko area.
And Mr, Pei emphasized that the investment will contribute to the social and economic well-being of the country. The company plans to comply with laws of the country, and also plans to give back to the community, such as building schools and clinics for local communities.
Mr. Pei stated that as part of their social responsibility and as a good corporate citizen, the company plans to employ local people and train them in mining and business ventures. He said he believes in the utilization of local people for the good of any investment.
Mr. Pei expressed his gratitude towards their partner and Zimbabwe for their hospitality during the visit. He now better understands the country and its people, and is confident that the investment will be a huge success.
He also stated that the investment will boost employment in the country and that both parties are confident in the success of the project and are ready to put their capital in the project to accelerate the construction of the plant.
He declined to disclose the value of the investment in the lithium processing plant in Zimbabwe, stating that he was bound by Chinese Stock Exchange rules where his firm is listed.
On Friday,13.01.2023 Mr. Pei and his team were in Insiza district, Matabeleland South Province, visiting Fort Rixon to assess progress at the site of the Zulu Lithium project. The China-based company had a revenue of $20.2 billion in 2021.
According to the company’s 2022 third-quarter report, Mr. Pei owns a 5.8% stake in CATL through his majority stake in Ningbo Liane, a 79.9% stake in the holding company Ningbo Lianhe and another 35% stake in Suzhou TA&A Ultra Clean with his wife. According to Forbes, the businessman is ranked among China’s wealthiest people. He also chairs the board of Premier African Minerals (PAM), a multi-commodity mining and natural resource development company and was assessing progress of the high-impact Zulu Lithium project in Fort Rixon.
The Zulu Lithium project, located in Zimbabwe, is considered one of the largest undeveloped lithium-bearing pegmatite in the country, spanning an area of 3.5 square kilometers. The area is rich in lithium and tantalum mineralization.
As lithium demand is rapidly increasing globally, driven by its use in the ceramics industry, mobile phone manufacturing, and the production of automotive batteries.
