China’s Huayou Buys Lithium Mine For $422m – NewZimbabwe.com

0

Reuters


CHINA’S Zhejiang Huayou Cobalt (603399.SS) said on Wednesday it would pay a total $422 million to acquire the Arcadia hard-rock lithium mine in Zimbabwe.

The move marks Huayou’s second foray into lithium, a key ingredient in rechargeable batteries, in the space of a week. It is the latest acquisition of overseas battery mineral resources by Chinese companies looking to shore up supply to meet demand from the burgeoning electric vehicle (EV) sector.

Huayou, the world’s biggest producer of cobalt, another battery metal, in 2020, said in a filing it would pay $388.8 million for Australia-listed Prospect Resources Ltd’s (PSC.AX) 87% stake in Arcadia owner Prospect Lithium Zimbabwe.

It will pay another $44.2 million for the 6% stake held by Zimbabwean professor Kingston Kajese and the 7% held by Tamari Trust, which previous Prospect filings show is linked to Paul Chimbodza, executive director of Prospect Lithium Zimbabwe.

The Arcadia project aims to process 2.4 million tonnes of ore per year but has not yet reached commercial production.

Prospect Resources said in July the first batch of petalite from pilot production had been delivered to offtake partner Sinomine and that it was also working on spodumene samples.

Spodumene and petalite are lithium-bearing minerals.

Zimbabwe is desperate to attract investors into its mining sector, which it says will drive the recovery of its stricken economy. It has opened its doors to Chinese firms, which now operate several chrome, coal and gold mines.

Huayou’s Executive Vice-chairman George Fang told Reuters in September that the company was seeking to invest in lithium mining and processing, including in Africa.

Last Friday, Sichuan New Energy Power Co Ltd (0001555.SZ) said it agreed a lithium production and battery recycling tie-up with Huayou in China.

Stay connected with us on social media platform for instant update click here to join our  Twitter, & Facebook

We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.

For all the latest  Business News Click Here 

Read original article here

Denial of responsibility! Rapidtelecast.com is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.
Leave a comment