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Leonard Ncube, [email protected]

Driven by a substantial investment appetite, Kamativi Mining Company (KMC), which is seeking to exploit the lithium resource in Hwange District, has captured the attention of the Government and President Mnangagwa is expected to officially commission the refocused mining project sometime next month.

KMC is a Joint Venture company operated and controlled by Sichuan PD Technology Group, a subsidiary of the Chinese-listed entity Yahua Group, and a local partner, Defold Mine (Private) Limited.

KMC started operations in 2019 focused on lithium exploration, mining, and processing within Kamativi, a former tin mine that closed in 1994 when international prices of tin plummeted to unsustainable levels.

Riding on the renewed investment interest in Zimbabwe under the Second Republic led by President Mnangagwa, the new investor has reopened the mine and expects to invest a total of US$249 million, this time exploring lithium and not tin.

Phase One of the mine is already successfully running and producing 300 000 tonnes of raw ore and 50 000 tonnes of spodumene concentrate per annum. 

Phase two, which will ramp up production to 2,3 million tonnes of raw ore and 300 000 tonnes of spodumene concentrate per annum is under construction and will be completed mid-year.

Mines and Mining Development Minister Zhemu Soda visited the mine on Wednesday on the sidelines of the 9th Ordinary Meeting of the African Diamond Producers Association (ADPA), which ended yesterday in Victoria Falls, to have an appreciation of progress made at the mine ahead of its commissioning.

He commended the mineral beneficiation bias of the business, which buttresses the Government’s National Development Strategy ideals of ensuring that strategic minerals are domestically beneficiated and value assigned to them before they are exported.

“This is exactly what we witnessed here. In a month this plant shall be commissioned by His Excellency the President and we just came here to satisfy ourselves with the readiness of the company for beneficiation of the first phase of their plant,” said Minister Soda.

“As they took us through the briefing, they told us that the total amount, which they can invest when they have gone through all other successive phases will be US$249 million and at the moment they have already deployed US$100 million into the project.”

The project has already created direct employment for 260 people while about 1 000 are employed indirectly through downstream contracts impact.

The mine is also involved in corporate social responsibility in schools, clinics, roads and water provision amid plans to establish a solar project to boost energy generation. 

Minister Soda said the mining industry contributes about 13,8 percent to the country’s Gross Domestic Product and hoped much more is expected with the coming in of KMC.

“We are happy about their level of environmental protection as they are extracting the mineral and how they are working with the community, so in a month the plant will be commissioned. We are pleased with the increased appetite for investment in Zimbabwe, which Kamativi has shown by embarking on the second phase plant. 

“The first phase is up and running and they moved on to construct the second plant, which is six times bigger in terms of generation capacity than the first phase and this plant will be complete and up and running in June this year,” said Minister Soda.

The site for the commissioning ceremony is being prepared near the second plant and the minister said the Government was grateful for the developments regarding job creation and improved livelihoods for the community in line with Vision 2030.

“We started off with the first dispensation, which was to beneficiate to a concentrate but already they (KMC) have provided us with a plan that will take them up to successive stages and the next stage will be to beneficiate to lithium carbonate, which all producers have started to work on,” said Cde Soda. 

“We are moving in stages until we finally get to a point where we are not only producing lithium batteries but to also manufacturing vehicles that will be powered by lithium batteries.

“We expect much more than what they even explained to us today, working with communities through some interventions like water provision through borehole drilling, construction of clinics, and many other social amenities hence we expect that there is going to be a huge contribution to the community and the country and large,” he added.

“So, with the coming in of mines like Kamativi Mining Company, we expect some improved contribution of the mining industry to our GDP through various levies that also benefit the local community through local authorities, which funds can then be deployed towards improving of livelihoods.” 

KMC non-executive director Mr Munashe Shava said the first seven years will be open-cast mining before the company ventures into underground mining.

He said the second phase is a replica of phase one but at a bigger scale.

“The reason why we did Phase One was also to validate our design and process to make sure that what we intended to achieve was achieved and this has been very successful, that’s why now we are embarking on Phase Two. All equipment for phase two is already on site and our target is to be done with all the construction work by June and have the project up and running by July,” said Mr Shaba.

KMC general manager Mr Ye Jianguo, said no community or villagers will be relocated as the operations are happening off human settlements.

He said work is underway to construct a dedicated 88kv power line to supply the project as Kamativi has electricity challenges.

“Now it’s (power line) already under construction and we hope to complete it by the end of July,” he said. 

Hwange Rural District Councillor for Ward 11 Josephat Tshuma said the community is excited over job opportunities created by the mine.