Oliver Kazunga
Senior Business Reporter
ZIMBABWE’S largest mining group, Kuvimba Mining House (KMH), says it is transforming Sandawana Mines into a world-class high-grade lithium operation that will have an annual turnover of US$4,5 billion once a beneficiation plant is installed.
The mine, which is based in Mberengwa District in the Midlands Province and has a history dating back to 1955 when emeralds were first mined at the operation, is being resuscitated as a lithium and tantalite mine by KMH following a cumulative capital injection of US$56 million.
Sandawana, which exchanged hands over its long history, has been an important producer of emeralds for 40 years before production was suspended in 2010 due to working capital challenges and a reduction in emerald resources.
This saw the mine being taken over by KMH in 2019 which to date has injected US$56 million towards reviving operations and exploring for lithium and other mineral resources.
Sandawana started operating under Rio Tinto before its ownership went to other investors over the years.
Speaking during a media tour of the mining operation on Wednesday, Sandawana Mines general manager Mr Godwin Gambiza said the beneficiation plant would take between 12 and 18 months to install.
“Kuvimba Mining House is developing Sandawana Mines, which is one of its entities into a world-class lithium deposit mine in the Mberengwa District of Zimbabwe.
“We are looking at an annual turnover of around US$4,5 billion coming from this mine; you will see the impact it is going to have on the US$12 billion mining industry.
“When we now have a beneficiation plant in operation feeding 6,7 million tonnes of lithium ore per annum, the Government will realise approximately US$300 million in terms of royalties coming from Sandawana Mines,” he said.
Sandawana is also rich in other minerals that also include tantalite, copper, and gold, among others.
“The mine had wound down around 2010, it ceased operations as an emerald and tantalite mine. This was due to the depressing market prices for emeralds and constraints on the working capital as well as other factors that resulted in the shutting down of the mine and was on care and maintenance for a period of about 10 years.
“Kuvimba came in and acquired the asset and invested a total of US$56 million to revive the operations as well as to explore for lithium and other minerals,” said Mr Gambiza.
Sandawana commenced a four-phased extensive exploration programme which is almost complete in January this year.
Under Phase 1 of the exploration programme, Mr Gambiza said Sandawana targets a resource of up to 30 million tonnes of lithium ore.
“We pride ourselves in the sense that we are the first lithium operation in Zimbabwe to have our resource in measured category, already as we speak right now we are talking of 18 million tonnes of lithium ore that we can confirm as in measured category, around 2,3 million in indicated and the balance up to 30 million as inferred but we’ll be winding this at the close of this month,” he said.
Phase 2 of the exploration work will also see the multi-commodity asset increasing output by 30 million tonnes of lithium ore.
“As we go to Phase 3 and 4, we then expect our resource to go up to 200 million tonnes and that will position Sandawana as the biggest lithium mine in Zimbabwe.
“So far those (local lithium miners) who have released their information on exploration, the leading one is sitting on a deposit of 72 million at an average grade of 1,06 percent lithium oxide.
“In our case, we will be around 200 million at an average grade of 1,4 percent lithium oxide which means again in terms of the grade we are leading,” he said.
“If we were to have a cut-off of our grade, at around 0,5 percent that would mean that our deposit would slightly come down to just below 200 million but the average grade would go up to around 1,6 percent which again positions us in terms of quality of lithium tonnage in the country.”
Zimbabwe, believed to be hosting Africa’s largest lithium deposits and the fifth world’s biggest deposits is positioning for an economic boom from the global drive towards a shift to battery-powered machines.
Over the years, lithium has become a much sought-after mineral across the world as the automotive industry is shifting towards electric cars that among other valuables use lithium-ion batteries.
In a statement, KMH chief executive officer Mr Simba Chinyemba was quoted saying his organisation is committed to raw materials’ beneficiation and value addition.
“To this end, feasibility studies for a 4,5 million floatation plant are underway. The plant is expected to be commissioned within 18 months.
“To achieve this, KMH is currently evaluating joint venture potential with some of the world’s largest companies in the lithium battery technology space.
“Discussions are at an advanced stage with at least 3 potential partners,” he said.