China’s Huayou buys lithium mine in Zimbabwe for $422 mln 

Source: China’s Huayou buys lithium mine in Zimbabwe for $422 mln – NewsDay Zimbabwe

China’s Zhejiang Huayou Cobalt (603799.SS) said on Wednesday it would pay a total $422 million to acquire the Arcadia hard-rock lithium mine in Zimbabwe.

The move marks Huayou’s second foray into lithium, a key ingredient in rechargeable batteries, in the space of a week. It is the latest acquisition of overseas battery mineral resources by Chinese companies looking to shore up supply to meet demand from the burgeoning electric vehicle (EV) sector.

It will pay another $44.2 million for the 6% stake held by Zimbabwean professor Kingston Kajese and the 7% held by Tamari Trust, which previous Prospect filings show is linked to Paul Chimbodza, executive director of Prospect Lithium Zimbabwe.

Spodumene and petalite are lithium-bearing minerals.

Zimbabwe is desperate to attract investors into its mining sector, which it says will drive the recovery of its stricken economy. It has opened its doors to Chinese firms, which now operate several chrome, coal and gold mines.

Huayou’s Executive Vice-chairman George Fang told Reuters in September that the company was seeking to invest in lithium mining and processing, including in Africa.

Last Friday, Sichuan New Energy Power Co Ltd (000155.SZ) said it agreed a lithium production and battery recycling tie-up with Huayou in China.-Reuters