Zimbabwean president hails Chinese miner’s acquisition of lithium mine
Zimbabwean President Emmerson Mnangagwa on Friday welcomed the partnership between Chinese firm Zhejiang Huayou Cobalt and Australian firm Prospect Resources, under which the Chinese firm will acquire Arcadia Lithium Mine.
Zhejiang Huayou Cobalt said in a statement this week that he would pay a total of US $ 422 million to acquire the Arcadia Lithium mine owned by Prospect Resources, about 40 km east of Harare, the capital of Zimbabwe. He said he would pay $ 377.8 million for the 87 percent stake in Prospect Resources and $ 44.2 million for a 6 percent stake held by a local investor.
Speaking at a signing ceremony between the two sides held at State House, Mnangagwa pledged his government’s full support to facilitate unlocking the maximum value of the strategic mineral resource, for win-win benefits.
State broadcaster ZBC reported that Mnangagwa said the signing of the agreement for the development of the Arcadia lithium mine is a positive development as the country continues to move towards achieving a $ 12 billion mining sector. US dollars by 2023.
“Development further reinforces the important role played by the mining sector for the overall achievement of the results set out in National Development Strategy-1 (NDS-1) and Vision 2030. On behalf of the government, the people of Zimbabwe and good Sure of On my own behalf, I am pleased to welcome to Zimbabwe a world-class partner, Zhejiang Huayou Cobalt, which is listed on the Shanghai Stock Exchange, ”he said. “We are therefore excited by the emergence of companies such as Prospect Resources and Zhejiang Huayou Cobalt. With a focus on lithium mining and value chain industries, this key mining sub-sector will contribute immensely to achieving development that leaves no one and no room. I expect that investments of this nature will also help lift many of our citizens out of poverty and prosperity.
President Mnangagwa pledged that the government will continue to implement comprehensive reforms to improve the country’s competitiveness in this sector.
“Lithium is the mineral of today and even of tomorrow. Its many uses are essential components of various industries in the value chain, including portable electronics; glass and ceramic; energy storage and the manufacture of electric vehicles, ”he said. “As a country with one of the largest lithium reserves in Africa, we are poised to become a hub for research, development, exploitation and manufacture of green energy and solutions to lithium base. “
Zimbabwe has abundant natural resources and very diverse mineral endowments. And the country’s mining industry is mainly based on gold, chromium, platinum, and diamonds.