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Oliver Kazunga, Acting Business Editor

PROSPECT Resources which owns the Arcadia Lithium project in Zimbabwe says while the battery market is a key driver of lithium demand, the company will also remain focused on tapping into the glass and ceramics industry.

Definitive Feasibility Study (DFS) results of the Australia-listed junior miner whose Arcadia Lithium project was presently under development, position the company in securing a key role in the expansion of global lithium market.

In a statement on its updated DFS, Prospect Resources managing director Mr Sam Hosack said:

“We see the battery market as a key driver of lithium demand growth but remain focused on the glass and ceramics market where Arcadia seeks to become a significant, consistent and reliable high-quality supplier and thereby access the premium prices available in this market.”

He said the material upgrade to his organisation’s DFS on a base case of a 2,4 million tonnes per annum (Mtpa) development of the project is a significant achievement. 

“The DFS results position the company to secure a key role in the expanding global lithium market and validates my belief that Arcadia is Africa’s leading lithium project with respect to its scale, grade, economics and management team. These outcomes demonstrate Arcadia’s ability to rapidly payback project finance,” said Mr Hosack.

He noted that what was standing out from the intensive workstreams as part of the DFS update is the technical and financial strengths of Arcadia Project.  “This DFS represents a major milestone for Prospect as we transition through finance towards development. We are excited by the opportunity to capitalise on the strong fundamentals of the lithium market, particularly the unique ability to supply the glass and ceramics market with technical grade ultra-low iron petalite.”

Meanwhile, Prospect has appointed AfreximBank as mandated lead arranger to arrange and manage the primary syndication of a US$143 million project finance debt facility.

The regional financiers has proposed to fund and hold US$75 million of the facility. The parties have also agreed a non-binding indicative debt facility term sheet.

It is hoped that the Arcadia lithium project, which has been granted a Special Economic Zones status by the Government will create up to 10 000 jobs along the value chain.

Early last year, the Zimbabwe Special Economic Zones Authority (Zimseza) announced that the Arcadia lithium project was set to attract US$165 million in foreign direct investment with potential to generate an estimated US$3 billion income in the first 12 years of operation. — @okazunga.