Zimbabwe's Lithium transactions in the past two years

Zimbabwe is currently the World's 6th largest producer of lithium and holds the largest reserves in Africa. Annual output for Zimbabwe has been averaging 1600 tonnes with most of the product mined from the Bikita pegmatite. Oversupply and other market factors led to a downturn of the sub sector between 2018 and 2020. Renewed demand for EV batteries has driven average concentrate prices (spodumene) up 352% to US$2,700 with further upside foreseen in 2023. Additionally, battery grade lithium carbonate hit an all time high of US$74,475/tonne in 2022 triggering a rush to secure supply. In December 2022, the government of Zimbabwe banned exports of unprocessed ore to promote beneficiation. Infrastructure by large scale miners supports value addition up to concentrate level. Effective 1 January 2023, the royalty rate for Lithium was upped to 5%

Lithium transactions conducted in the past two years ~Acquisition of Bikita Minerals by China Sinomine Group for US$200mn ~Acquisition of Arcadia Lithium mine by Huayou for US$422mn ~Acquisition of 51% of Sabi Star mine by Chengxin Lithium Group for U$76.5mn ~Forward purchase of concentrate for US$35mn by Suzhou TA&A to be to Zulu Lithium and Tantalum project to be used to commission a large scale pilot plant near Bulawayo. SOURCE----ZIMBABWE EQUITY RESEARCH EQUITY STRATEGY 2023 JANUARY 2023

The day the US$10,3 billion man visited Fort Rixon

WHILE the world of the ultra-rich may be brimming with private jets, rarely do billionaires find time to fly just to check on their massive global investments dotted around several parts of the planet. Most wealthy business magnates usually assign their executive teams to physically go on-site, while they prefer monitoring their massive investments from the comfort of air-conditioned board rooms or luxurious top-end hotel business suites. For some, like Chinese billionaire, Pei Zhenhua (64), whose net worth is US$10,3 billion, the script reads differently. On a hot and humid Thursday afternoon, Saturday Chronicle caught up with Pei during his visit deep in Fort Rixon to assess progress at the site of the lithium project. Clad in a white shirt, a pair of black trousers, and sports shoes, Pei humbly stood in a queue as he patiently waited for his turn to be served lunch.

One of the people serving lunch was overheard saying, "From our menu, I wonder whether the chairman will be able to eat what is on the offer." Rice, samp, fried chicken and beef and a variety of vegetables were being served. When his turn arrived, Pei took his plate and joined the rest of the workers and visitors eating the food much to the relief of the waitress who served him.

Pei is the chairman of Suzhou TA&A Ultra Clean Technology Company, a Shanghai Stock Exchange-listed firm, which provides antistatic cleaning technology. The majority of Pei’s fortune is derived from his stake in Contemporary Amperex Technology Co., Limited (CATL), a battery products manufacturer. CATL is the largest supplier of electric vehicle batteries in the world, according to its website. The China-based company had a revenue of US$20,2 billion in 2021 Pei owns a 5,8 percent stake in CATL through his majority stake in Ningbo Lianhe, according to the company's 2022 third-quarter report. He also owns a 79,9 percent stake in the holding company Ningbo Lianhe. Add to that another 35 percent stake in Suzhou TA&A Ultra Clean with his wife, according to the company’s 2022 third-quarter report. According to the American global business magazine, Forbes, the mogul is ranked among China's richest people.

On Thursday, Pei flew into the country on his private jet, to assess progress on a high-impact Zulu Lithium project, in Fort Rixon, Insiza District in Matabeleland South. The project is generally regarded as potentially the largest undeveloped lithium-bearing pegmatite in Zimbabwe, covering a surface of about 3,5 square kilometres which is prospectively for lithium and tantalum mineralisation. Last year, PAM secured US$35 million in pre-funding from Suzhou TA&A Ultra Clean Technology Company to enable the construction and commissioning of a large-scale pilot plant. The project is developing at a rapid pace. Pei, who was visiting the country for the first time, was all smiles as he narrated how warm and hospitable Zimbabweans are. "I arrived in Zimbabwe on Wednesday and it's my first time here. I am very impressed by the infrastructure I have seen, and most importantly, I was warmly welcomed at the airport and everywhere I go, the people are so friendly," he said. "I have also observed that the local Zulu Lithium team is very hardworking and I am quite impressed. Zimbabwe is a safe investment destination and I am confident that this lithium project will be a success."

Pei is even considering expanding his investment in the country by exploring other opportunities. The Second Republic has created a conducive environment for the attraction of both local and foreign investments.

"If you want to deliver a successful product you must first become a good corporate citizen and contribute, not only to the product but to the local community. Our team here has conquered many challenges and I believe the standards set are very high," said Pei. An engineer by profession, Pei recently ventured into an energy-related sector and focuses on battery manufacturing. He worked for the Jiangsu Textile Research Institute before he founded Suzhou TA&A in 1997. Pei has othr investments worth US$30 million in Mutoko in Mashonaland East Province. Globally, industry investment in battery production and its value chain is increasing. This, in turn, is driving demand for underlying battery raw materials, including lithium, whose demand has overtaken that of non-lithium batteries. Chinese investors have shown tremendous interest in the country’s lithium. Zimbabwe is recognised as one of the most prospective countries in Africa for pegmatite-hosted lithium. Lithium is increasingly becoming a key mineral worldwide with its demand surging for use in the ceramics industry, mobile phone manufacturing, and the making of automotive batteries. ARTICLE FIRST PUBLISHED BY THE CHRONICLE UNDER @nqobilebhebhe

24/7 work shift at Fort Rixon lithium plant

PREMIER African Minerals Limited says the construction of its pilot lithium production plant in Insiza District, Matabeleland South province, has hit the home-stretch with officials upbeat on tests results, which further confirm high lithium deposits. The multi-commodity firm is developing a high-impact Zulu Lithium Project in Fort Rixon where it is targeting production within this quarter. The lithium project is generally regarded as potentially the largest undeveloped lithium-bearing pegmatite in Zimbabwe, covering a surface of about 3,5 square kilometers, which are prospectively for lithium and tantalum mineralisation. The mining firm has said civil support construction both at the plant site and the main masonry arch dam was progressing well and remained on target to produce spodumene in the first quarter of this year.

Lithium is a mineral used in the manufacture of batteries and its demand has risen sharply because of the demand for electric cars, especially in developed countries that are forging ahead with plans to phase out fossil fuels such as petrol and diesel in the next coming years. Group chief executive officer, Mr George Roach, yesterday said: "We are into the home-stretch with pilot plant construction and site activity is frenetic with multiple work streams all targeting the same near-term completion date," he said in the latest first update for the year. "Pre-strip has commenced in the initial pit area to be developed. Activity in the pilot plant assembly areas is now on a 24/7 basis. In the absence of any unforeseen issue, I expect that first shipments of SC6 will commence in Q1 as projected."

Mr Roach said they still have a significant backlog of assay results and continue to develop a mining model for the pilot plant that is expected to deliver run-of-mine material from pegmatites that are dominated by spodumene. "The assay results reported on today continue to demonstrate good lithium values over significant widths that are all supportive of the quality of the mineralised pegmatites we intend to mine in the first phases of the pilot plant operations," he said. "Whilst I'm not in a position to provide direct guidance yet, it should be noted that the design capacity on the floatation circuit anticipates a mass pull of up to 30 percent at a design feed rate of 40 tons per hour of milled material." This represents a potential 12-tonne per hour of spodumene-rich concentrate, he added. Mr Roach said accurate predictions of the feed grade of spodumene-rich material reaching the floatation circuit, nor to predict the final concentrate grade, or final tonnage production rate will be possible to ascertain when operations have begun. "That is the nature of a pilot plant. I will provide further updates over the coming weeks," he said. Early this year, the chairman of Suzhou TA&A, Mr Pei Zenzhue who injected US$35 million in pre-funding to enable the construction and commissioning of a large-scale pilot plant at the project had his first visit to the site and expressed satisfaction with the progress made so far. Suzhou TA&A Ultra Clean Technology company, a China-based company principally engaged in the research, development, production, and sale of anti-static ultra-clean products provided the funding.

Zimbabwe is envisioning a US$12 billion mining industry by 2023, which is a key enabler of Vision 2030 of achieving an upper-middle-in-come economy by 2030. Of the US$12 billion, gold, platinum, and diamonds will contribute US$4 billion, US$3 billion, and US$1 billion respectively. Other minerals such as chrome, iron ore, and carbon steel will contribute US$1 billion while coal and hydrocarbons will do the same. Given its strategic role within the global economy, lithium is expected to contribute US$500 000 while other minerals will add US$1,5 billion. Lithium has already proved its position as a strategic mineral given its role in the storage, use, and transfer of energy, which has touched the globe through the use of smartphones for global communication, laptops, electric grid stability, and storage to power homes, and electric vehicles. ARTICLE FIRST PUBLISHED BY THE CHRONICLE UNDER @nqobilebhebhe