Almot Maqolo, Staff Writer 
SANDAWANA Mine (Sandawana) says it is holding talks with potential partners to raise about US$220 million to start further beneficiation of spodumene concentrate.
Sandawana was previously one of the world’s largest emerald mines, but closed years ago after production fell and markets dried up. Kuvimba Mining House (KMH) now intends to restart the mine as a lithium producer.
KMH’s, head of the energy cluster, Travor Barnard, said the company was looking for capital to kick-start the project and the first step would be to manufacture lithium sulphate before expanding to lithium carbonate, which is the final chemical that goes into battery manufacturing.
KMH’s, head of the energy cluster, Travor Barnard
“The total capital expenditure for this phase is estimated at around US$220 million and that will take us to be able to construct the plant and all the associated infrastructure around it, which would include road works, electrical power, water, and housing, until you have a fully operational plant that will be able to produce the lithium concentrate.
“Our product would be a spodumene concentrate at around 5,5 to six percent purity of lithium, which is a generally accepted product in the battery industry.
“At this stage, we are looking at various fundraising options; unfortunately, we can’t discuss those options because they are confidential, but we are having various discussions with some partners to fund this project.
“We are confident about this because of the significance of this resource and the fact that lithium demand will be growing going forward. So, there is a certainty that we will be able to implement this project and find funding.”
On the other hand, anxiety is mounting over the threat of softening mineral prices hurting Zimbabwe’s economic progress this year and the next, with analysts this week warning that escalating tensions in the Middle East could worsen the situation.
While commodity prices have dropped over the last 12 months, Barnard told The Financial Gazette that they expect prices to level at the end of this year and 2024 and then start to rise again.
“We are actually now doing this development at the right time because by the time we start to generate revenue, we will see the price going up again and it will be so much better for our business,” he said.
“While we are busy developing the mine, the price of lithium might be broadening out and when we really get ready to start commissioning and start producing, we will see an increase in the pricing levels and that would be to our benefit.”
The Sandawana Mine is situated south of Mberengwa and lithium was discovered around 18 months to two years ago after which KMH, the majority shareholder, decided to launch an exploration campaign, which started at the beginning of 2023 and phase 1 drilling was completed.
From the initial exploration results, the resource is estimated to be around 15 million tonnes, at a growth rate of about 1,6 percent.
Also, the miner is doing further phases of exploration in phases three and four, and the overall expectation is that the resource will end up being around 100 million tonnes in total.
