Zimbabwe seals USD 1.4 bln lithium deal
State owned enterprise, the Zimbabwe Mining Development Corporation (ZMDC) has struck a lithium mining deal with worth 1.4 billion USD. A foreign investor was granted permission to exploit sources located in Matabeleland North region. Mines and Mining Development Minister Mr Winston Chitando confirmed that on Tuesday.
“There is lithium and it’s quite exciting. I can say over the last few weeks since my appointment as minister, most of the enquiries are on lithium. On Friday last week, Zimbabwe Mining Development Corporation (ZMDC) managed to close a deal with an investor for part of its lithium deposits, and I am sure an announcement will be made in a day or two — it involves a quoted company,” said Minister Chitando.
“We have another quoted company, which is quite active on lithium assets, getting close to finalising a bankable feasibility study. We also have two other lithium assets, where some exploration work is taking place,” he said to the Zimbabwe Herald.
In an interview with The Herald after the event, Minister Chitando said the lithium deal, which mainly involves the reprocessing of dump, would unlock more than $1,4 billion over the next few years. It is believed that the investor will begin work on the site in March.
Government believes that the investment, which is part of the 100-day programme, will employ 500 people and have an “immense” impact on the local economy, especially for downstream and upstream industries.
Apart from the deal that has been concluded, Minister Chitando said there were two other projects that were currently finalizing feasibility studies. Further, an additional two projects are at exploration or “source-quantification stage,” said Mr Chitando.