Page 8 - AfrElec Week 10 2023
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AfrElec BATTERIES AfrElec
China to pay $1.75bn for Zimbabwean
lithium mine
ZIMBABWE CHINA Natural Resources Inc (CHNR), a Nas- mines. We hope to be able to leverage our min-
daq-listed mineral explorer, has entered into a ing expertise, sales and distribution platforms
definitive agreement with two Chinese compa- and balance sheet, as we continue to execute our
nies to acquire a lithium permit in Zimbabwe for long-term business strategy.”
$1.75bn. Zimbabwe reportedly has Africa’s largest
The Shenzhen-headquartered company said deposits of lithium, a key competent of batter-
it had signed the deal with Feishang Group Lim- ies that power electric vehicles and solar energy
ited (Feishang) and Top Pacific (China) Limited systems. Demand for the mineral is spiking amid Lithium has
and Li Feilie and Yao Yuguang, to acquire Wil- global efforts to shift from the usage of polluting
liams Minerals (Pvt) Ltd (Williams Minerals), energy sources to renewables. become one of
which owns the licence for the mine. CHNR joins a substantial list of China-affil- the most sought-
Feishang, which is CHNR’s controlling share- iated companies investing in the southern Afri-
holder, owns 70% of Williams Minerals and Top can nation’s lithium sector. Sinomine, Suzhou TA after and highest
Pacific (China) Limited, a non-affiliate, owns the & A Ultra Clean Technology (Suzhou), Huayou
remaining 30%. Cobalt and Chengxin are building mines and appreciating
Under the agreement, it is expected that processing projects in the country.
CHNR will indirectly acquire all interests in Suzhou holds 13% of a project it is develop- minerals given
Williams Minerals in the second fiscal quarter ing jointly with majority shareholder AIM-listed its proven power
of 2023, and that the company’s ownership of Premier African Minerals in western Zimbabwe.
the property will vest cumulatively, region by The partnership is building a pilot plant expected advantages.
region from 2024 through 2026, contingent to produce its first spodumene by the end of
upon the issuance of independent technical March 2023. Wong Wah On Edward
reports and the Company’s full settlement Sinomine’s project in southeastern Zimba- CHNR chairman
of the purchase consideration in cash and bwe has doubled petalite production to about
restricted shares. 60,000t/y and is constructing a spodumene pro-
CHNR chairman, Wong Wah On Edward cessing line.
commented: To guarantee enough electricity supply for the
“Lithium has become one of the most expanding operation, Sinomine has also signed
sought-after and highest appreciating minerals a $24mn deal with the Zimbabwe Energy Trans-
given its proven power advantages. At the same mission Distribution Company, a unit of power
time, there is a significant supply shortage, which utility, ZESA Holdings, to build power transmis-
puts an even greater value on asset owners and sion infrastructure to the mine.
P8 www. NEWSBASE .com Week 10 08•March•2023
