state-owned
miner
is
partnering
with two
Chinese
metals
giants to
build
the
600,000
metric
ton
per
year
lithium
concentrator.
The
two
firms
will
build
and
operate
the
plant
for
a
minimum
of
five
years,
before
transferring
it
back
to
Kuvimba.
Barnard
declined
to
name
the
companies,
citing
ongoing
talks.
“We
are
still
finalising
the
last
few
agreements
that
we
need
to
put
in
place
and
making
sure
we
have
all
the
necessary
and
compatible
industry
conditions
for
our
partner
to
start
construction,”
Barnard
told
reporters.
“We
are
looking
at
breaking
ground
in
the
third
quarter,”
he
added.
Kuvimba,
which
has
been
stockpiling
lithium
ore
at
Sandawana,
has
been
hauling
some
of
it
to
a
processing
plant
in
Gwanda,
owned
by
Chinese
nickel
and
steel
giant
Tsingshan
Holding
Group.
Barnard
said
the
targeted
completion
of
the
Sandawana
lithium
concentrator
could
coincide
with
a
recovery
in
the
price
of
the
battery
metal.
glut mainly
driven
by
Chinese
output
has
caused
lithium
prices
to
plunge
nearly
90%
over
the
past
two
years,
forcing
miners
to
halt
projects
and
cut
jobs.
However,
analysts
say
those
production
cuts
and
robust
electric
vehicle
sales
in
China
could
propel
lithium
demand
above
supply
this
year.
“Our
forecast
is
that
lithium
prices
will
recover
sometime
in
the
year
2027,
right
at
a
point
in
time
when
we
expect
the
concentration
plant
to
be
in
production,”
Barnard
said.
Africa’s
top
lithium
producer,
has
said
it
will ban the
export
of
lithium
concentrates
from
2027
to
push
for
more
local
processing.
By
then,
the
government
expects
Zhejiang
Huayou
Cobalt (603799.SS),
opens
new
tab and
Sinomine (002738.SZ),
opens
new
tab to
have
completed
facilities
for
further
processing
in
the
country.
Reporting
by
Chris
Takudzwa
Muronzi.
Editing
by
Nelson
Banya
and
Mark
Potter
Post
published
in:
Business