Prospect Lithium Zimbabwe’s application for special economic zone status was approved by the Authority on the 26th of February 2019. ZIMSEZA together with Prospect Lithium is now working on the modalities to operationalise the zone and this will result in the Declaration of the zone in the Government Gazette by the 8th of March 2019 and the subsequent licensing of the project.
The project will attract foreign direct investment to the tune of USD$165 million with a potential income to Zimbabwe to the tune of approximately USD$2.93 billion during the first 12 year life of this resource.
Prospect Lithium Zimbabwe has completed mineral exploration work leading up to a Definitive Feasibility study on its mining claims on the Arcadia Lithium Project in the Arcturus area of Goromonzi.
In Phase 1 the investment will utilise standard mining technologies common in lithium mining, namely crushing, dense media separation, spirals and flotation. The company is excited about the possibility of developing Phase 2 which would be the Chemical plant to produce either Lithium Carbonate or Lithium Hydroxide. In addition, the company’s petalite concentrates can be used in multiple configurations in the unique global glass and ceramics markets. The key focus of this phase will be on value addition and beneficiation. Zimbabwe is now focusing on exports which bring real value to the nation instead of mere commodities.
The project will attract a minimum start-up capital of approximately USD$165 million and the annual export revenues for the project are estimated at approximately USD$ 200 million from the year 2021.
Average annual production of approximately 212 000tpa of 6% spodumene concentrates, 216 000tpa of 4% petalite concentrate and 188 000lbs of tantalum is projected. One offtake agreement is currently in place for approximately 20% of spodumene concentrates and 52% of petalite concentrates for the first 7 year’s production.
The project will see the creation of approximately 500 jobs during the construction phase and approximately 260 direct jobs.
According to our market and industry research as ZIMSEZA we project that the indirect jobs that will be created as a result of the successful implementation of this zone will be in excess of 10 000 through the value chain and linkages with local industries and the domestic economy.
Competitive technologies and skills in lithium mining for the production of spodumene and petalite concentrates will be introduced thus allowing the country to recover maximum value out of its lithium deposits. The project has the potential to produce battery grade lithium carbonate and hydroxide which would enhance economics and possible further downstream beneficiation.
ZIMSEZA and Prospect Resources are excited to develop a strong focussed CSR program that will identify key local community and economic initiatives in the areas of employment creation, education, health, and the supply of goods and services that will benefit the local communities and allow skills transfer and education uplift. Further benefits will accrue to the community as local infrastructure is developed to enable the mine operations such as roads, electricity and water.
On the academic and research areas the project’s laboratories will work together with Zimbabwean Universities thus adding weight and practical value to our degree programmes.
Chief Executive Officer’s office