Cluff Africa Limited has entered into a non-binding agreement with Zimbabwe’s sovereign wealth fund to establish a lithium mine in the country.
According to founder Mr. Algy Cluff, the company will obtain a 45 percent share of licenses at the Sandawana site. Financial specifics of the agreement were not disclosed.
Zimbabwe is actively seeking investors as lithium prices stabilize following a volatile period marked by stalled projects, canceled deals, and production reductions. State-owned miner Kuvimba Resources has reported a lithium ore resource of 38 million tons at Sandawana in the southern region of the country.
“We are excited to develop what we consider a world-class, high-grade lithium resource,” Mr. Cluff stated. Cluff Africa plans to initiate a drilling program once a final agreement is signed with the wealth fund, though no timeline was provided.
Mr. Cluff, a seasoned industry investor, has previously invested in Zimbabwe’s gold sector and is renowned for his involvement with Cluff Natural Resources, now Deltic Energy, a North Sea oil and gas company.
The sovereign wealth fund of Zimbabwe also holds investments in gold, nickel, and platinum mines. Attempts to reach the fund for comments were unsuccessful.
Over the past few years, Zimbabwe has seen significant investments in lithium assets, driven by the rising global demand for lithium, which is essential for electric vehicles and other electronics crucial for zero-carbon energy transitions.
Notably, major investments in Zimbabwe’s lithium sector have predominantly come from large-scale miners. The country hosts more than seven lithium exploration and mining projects in various stages of development, with significant involvement from Chinese companies.
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Key projects include the Arcadia Lithium project near Harare with an estimated US$477 million investment, Bikita Minerals’ global petalite operation being expanded into a 300,000 tonne per annum spodumene operation, Chengxin Lithium Group’s Sabi Star project in Buhera producing 3000 tonnes per annum, Zulu Lithium’s US$34 million spodumene project near Bulawayo, and Bravura’s multi-million dollar project in Kamativi.
Additionally, processing plants for lithium are being established in locations such as Shamva, Kadoma, Chegutu, Goromonzi, and Mberengwa, making lithium a pivotal component of Zimbabwe’s mining industry. The government aims to expand the sector to a US$12 billion industry from US$2.7 billion in 2017.
Zimbabwe’s lithium export earnings surged to US$209 million in the first nine months of last year, a significant increase from US$1.8 million in 2018 and US$70 million in 2022. Lithium is expected to soon become Zimbabwe’s third-largest mineral export, following gold and platinum.
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