KUVIMBA Mining House (KMH) has signed a build, operate, and transfer (BOT) agreement with a Chinese consortium to construct a three-million-tonne-per-year ore processing plant at Sandawana Mines.
According to a statement released yesterday, the plant is set to be commissioned within 18 months and is projected to generate an estimated US$600 million annually from a planned 600 000 tonnes of lithium concentrate. The financing for the first plant is expected to be US$310 million, which will be disbursed over the next 18 months. The loan will be repaid to the consortium during the BOT period.
"We are elated to have established these ground-breaking agreements with International entities," KMH acting group chief executive officer Trevor Barnard said. “Kuvimba Mining House is on foot to become a world-class lithium processing company, with a strong competitive edge in marketing high-quality lithium concentrate.
"It is encouraging to see the growing trust and confidence in the Zimbabwean minerals sector by the broad spectrum of investors.
“We are committed to mutual partnership of transparency, accountability, and efficient management of our local resources and this will underline the way we work,’’ he said.
A second plant is expected to be installed following the completion of a second round of exploration activities currently underway.
The BOT period will last six years, during which Sandawana employees will be trained to operate the state-of-the-art processing equipment.
KMH stated that the consortium has committed to providing funding for the development of the mine, a concentrate plant, and associated infrastructure. Sandawana Mines boasts one of the largest lithium deposits in Africa, spanning a 21-kilometre strip along the Mweza Mountain Range in the Mberengwa district of Zimbabwe. The former emerald mining company is also rich in tantalite, mica, and gold.
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