Chinese Mining Firms Expand in Zimbabwe

Zhejiang Huayou Cobalt Co. (603799) and Tsingshan Holding Group Co. are advancing in the Zimbabwe lithium sector.

Their joint venture with a state-owned company involves a comprehensive feasibility study for a mining and processing plant at Sandawana, even as lithium prices fall sharply. This strategic development underscores Zimbabwe’s rising status in the global lithium arena, drawing significant Chinese investments.

Key Developments in the Lithium Market

Zimbabwe’s role in the lithium market has grown considerably since 2021. Despite almost a 90% drop in global lithium prices, driven by oversupply and reduced EV demand, Chinese firms are still eager to secure raw materials for domestic refineries.

Investment Plans and Market Projections

Huayou and Tsingshan plan to inject $250-$300 million into their project, aiming to yield 500,000 tons of lithium concentrate annually. Kuvimba Mining House, owning the project asset, indicates a positive outlook for the market. CEO Trevor Barnard predicts price recovery by 2026, anticipating profitable operations despite current price levels.

While African lithium projects are expanding in countries like Namibia, Mali, and Ghana, they remain smaller compared to ventures in other continents.

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