The Zimbabwean Lithium Arcadia Prospect Resources project is making baby step to position itself as a major mining company to capture the world market for the rare earth -lithium. The feasibility study undertaken for the project says that it would have a processing capacity of 2.4 million tonnes per year and reserves can be tapped over a longer period of time.
Recently, the company has listed itself on the Frankfurt Stock Exchange. The mine now has a life of more than 15 years. This flagship project of PSC was acquired in 2016. Since it acquisition PSC has progressed the project from discoveries to assessment of its mineral resources three year period. Afreximbank has to arrange and syndicate a US$143m project finance debt facility. Earlier the bank has agreed to provide US$75m of the facility. The bank, which is one of the largest in Africa, has significant exposure in Zimbabwe. The Company is a leading lithium producer to both the chemical and technical markets.
Lithium and its compounds have several industrial applications, such as heat-resistant glass and ceramics, lithium grease lubricants, flux additives for iron, steel and aluminium production, lithium batteries, and lithium-ion batteries. These uses consume more than three quarters of lithium production. With the surge in the number of mobile phones across the world and proliferation of electronic devices for various uses, the demand for the battery segment alone for lithium will be very high
Having a SEZ licence, which is is valid for 10 years, with the right to renew and extend the licence prior to expiry, the company would be able to avail a number of fiscal concessions. The company has mining lease over an area of 1,031 hectares and encompasses some 57 Mining Claims. The company is looking forward to go for contiguous mining claims under one licence, to simplify tenement management.
