Oliver Kazunga in MBERENGWA
STATE-OWNED Sandawana Mine has extracted 2,9 million tonnes of lithium ore since January as it accelerates the development of a US$330 million concentrator plant ahead of a December deadline banning raw concentrate exports.
The investment aligns with the Government’s policy of promoting local mineral processing to maximise value addition, create employment and increase foreign currency earnings.
Under the policy framework, lithium producers must cease concentrate exports by December this year and transition to exporting lithium sulphate from January 1, 2027.
Mutapa Energy Resources chief executive officer Mr Innocent Rukweza said while the mine was working to establish domestic processing capacity, the project was behind schedule due to funding constraints.
Speaking during a familiarisation tour by the Parliamentary Portfolio Committee on Mines and Mining Development on Wednesday, Mr Rukweza said Sandawana was engaging potential partners to establish a lithium sulphate plant next year as part of efforts to achieve full-scale beneficiation.
“As you are aware, in line with NDS2, we are expected to stop the export of concentrates in December 2026,” Mr Rukweza said. “On that basis, we are also in talks to ensure that we build a sulphate plant, which we intend to commence next year. However, we are fully aware that we are behind schedule.”
He attributed the delays to capital and capacity constraints, noting that Sandawana, which is wholly owned by Mutapa Energy Resources, must mobilise resources locally.
The company has raised about US$20 million from the domestic market against a target of US$200 million required for the concentrator plant.
To sustain production while developing its own processing facilities in Mberengwa District, the mine entered into a toll-processing arrangement with Gwanda Lithium Company, which has processed 310 000 tonnes of lithium concentrate to date.
A US$15 million exploration programme undertaken between 2022 and 2023 confirmed sufficient resources to support a concentrator plant with an annual capacity of three million tonnes.
“We have mined 2,9 million tonnes of ore in our starter pit since January at an average grade of 1,48 percent,” Mr Rukweza said.
Sandawana has also invested more than US$65,3 million in supporting infrastructure as part of efforts to transform the operation into an industrial hub.
This includes a 52-kilometre service road linking the mine to York Business Centre, a 52-kilometre power line and a 16-kilometre water pipeline from the Mundi River in Mataga.
The company is also planning to construct a road linking Sandawana to West Nicholson in Matabeleland South Province through a consortium loan facility to open up a new economic corridor.
Zimbabwe holds Africa’s largest lithium reserves and ranks fifth globally.
The mining sector remains one of the country’s key economic drivers, with the Government projecting US$12 billion in mineral earnings this year, underpinned by value addition and beneficiation initiatives.
Parliamentary Portfolio Committee on Mines and Mining Development chairperson Mr Remigio Matangira said Parliament expected Sandawana to spearhead economic development in Mberengwa District through local employment creation and meaningful corporate social investment programmes.
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