Source: Mutapa to build US$300m lithium plant at Sandawana – herald
Nelson Gahadza
Senior Business Reporter
Mutapa Energy Resources will commission a US$300 million lithium concentrator plant at its Sandawana Mine in Zvishavane by November 2027, with construction expected to begin by next month.
This will help Zimbabwe ramp up production and beneficiation of the globally sought-after battery mineral.
Lithium is vital to Zimbabwe’s mining industry because it drives economic growth, shifts the country from exporting raw materials to high-value processing and positions the nation as a key player in the global green energy transition.
The mining sector is the main driver of Zimbabwe’s economy, contributing roughly 13 to 14,5 percent to the national Gross Domestic Product and accounting for about 75 percent of total national exports.
Mutapa Energy Resources’ plans to develop Sandawana Mine into a major lithium processing operation.
Zimbabwe banned raw lithium ore exports in 2022 and further tightened restrictions by suspending raw lithium concentrate exports.
Mining companies have a strict Government deadline of January 2027 to build local lithium sulphate processing plants.
Sandawana Mine has already invested heavily in roads, power and water infrastructure to support the new plant and surrounding communities.
The Government codified its beneficiation mandate into law, introducing compliance certificates and tracking to compel a shift from simple extraction to industrial manufacturing.
Companies like Prospect Lithium Zimbabwe have already built multi-million dollar processing plants to produce higher-value lithium sulphate locally rather than shipping raw concentrate abroad.
Authorities intend to use these intermediate processing steps as a stepping stone toward full domestic electric vehicle battery manufacturing, targeting billions in increased national revenue.
Zimbabwe ranks among the top global lithium producers, accounting for nearly 10 percent of worldwide production and holding the largest lithium reserves in Africa.
Lithium is now in high demand globally because it is an essential component in rechargeable lithium-ion batteries that power electric vehicles, portable electronics and large-scale renewable energy storage.
Mutapa Energy Resources chief executive officer (CEO) Mr Innocent Rukweza said in an interview after a tour of the company that they were working to complete the project within the planned time frame, despite the extensive logistical and infrastructure requirements involved.
“We are targeting to start construction at the end of September and, if everything goes according to plan, we should be commissioning the plant in November 2027,” Mr Rukweza said in an interview following a tour of the Sandawana Mine.
He said the project was being developed with a long-term view of creating greater value from the country’s lithium resources rather than relying solely on the export of raw or minimally processed material.
“The objective is not just to mine lithium and move it out of the country. We want to build the capacity to process it here, create value locally and ensure that the communities around the mine also benefit from the investment,” he said.
Mr Rukweza said Sandawana Mine has targeted revenue of between US$100 million and US$140 million this year, driven by stability in global lithium prices, which are key in supporting the upper end of the target.
The company has transported about 80 million tonnes of lithium ore to the Gwanda lithium plant over the past seven months.
Sandawana believes that current market conditions underpin its revenue projections.
“As long as lithium prices remain where they are, we are hopeful that this is a target we are likely to meet,” Mr Rukweza said.
He said the company was also seeking to fund its expansion programme largely from internally generated resources.
“We are going to organically fund all the projects that we have and rely less on loans or any alternative funding,” Mr Rukweza said.
The planned concentrator is expected to significantly increase Sandawana’s processing capacity as Zimbabwe pushes for greater beneficiation of lithium and other critical minerals.
Recent developments across the country’s lithium industry have reinforced the push towards local processing, with the Government seeking to increase the value captured from the country’s mineral resources.
However, construction of the Sandawana plant is dependent on completing a substantial relocation programme involving 104 families currently settled within the mining lease area.
Mr Rukweza said the company had constructed seven demonstration houses which were awaiting inspection and approval by Government departments in Mberengwa and two local traditional leaders.
“Once those houses are approved, we will move very quickly to complete the remaining houses. Our target is to have all 104 houses completed between September 20 and the end of September, and thereafter we will relocate the families,” he said.
Each household will receive a four-roomed house comprising a kitchen and ablution facilities, at an estimated cost of about US$28 000 per household.
The relocation programme also includes fencing, water reticulation and borehole siting to ensure that the affected families have access to water at their new homes.
The exercise also entails exhuming 52 graves located within the area earmarked for the processing plant.
Mr Rukweza said burial orders were being finalised, with exhumations expected to begin on September 1.
“We need to deal with the graves respectfully and in accordance with the law before we clear the site. Once the exhumation process is complete, we will be able to proceed with land clearing for the plant,” he said.
Beyond the plant itself, Sandawana is investing in supporting infrastructure that is expected to transform access to the mine.
Three contractors have been appointed to upgrade the 52-kilometre road to Sandawana. Masimba Construction will work on a 17-kilometre section and reconstruct the Mutsime Bridge, which has historically been a major access challenge during the rainy season.
SM Projects and Fossil are also involved in the road upgrade, with mobilisation fees already paid to the contractors.
“We recognise that you cannot have a US$300 million plant without the infrastructure to support it,” Mr Rukweza said.
“The road is critical, the bridge is critical, power is critical and water is critical. These are investments that will not only support the mine but will also leave a lasting benefit for the communities around Sandawana.”
The infrastructure programme includes construction of a water pipeline and a 132kV power line to supply the new plant and surrounding communities.
Mr Rukweza said the company was also determined to ensure that the mining investment translated into tangible benefits for host communities.
As part of its community empowerment programme, Sandawana has purchased 82 cattle for host communities and plans to construct deep tanks to support livestock production.
The company will also relocate the local primary school, construct a new clinic and move the police station outside the mining lease area to a larger facility.
“We want to ensure that we empower the communities that we are leaving,” Mr Rukweza said.
“We don’t want development at Sandawana to mean that communities are simply displaced and left behind. We want them to see tangible benefits from the investment and to have better facilities and opportunities as a result of the project.”
Zimbabwe has more than five active lithium mines and several major companies operating and developing local processing facilities ahead of the Government’s January 2027 raw export ban.
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