Sinomine-owned Bikita Minerals is set to invest US$500 million in a lithium smelter, essential for long-term competitiveness despite recent declines in lithium prices. Since acquiring Bikita Minerals in 2022, Sinomine has injected over US$200 million into exploration and expansion, boosting production capacity from 700,000 to 4 million tonnes per annum.
The company’s Gravity separation plant is expected to produce 300,000 tons of petalite annually, while the Flotation plant targets 270,000 tons of high-quality spodumene concentrate. However, after soaring prices in 2021 and early 2022, lithium prices have plummeted from over $70,000 per ton to around $20,000-$25,000 by mid-2023, and as low as US$13,798 this year, impacting profitability.
Managing director Xuedong Gong acknowledged the financial strain due to falling prices during a Parliament Portfolio Committee meeting, stating that if the market does not recover, downsizing and production cuts may be necessary. Despite current losses, Gong remains committed to the smelter investment and anticipates an additional US$400 million investment in the coming years to bolster local battery industry technology.
Bikita Minerals, fully owned by Shenzhen-listed Sino Mine Resource Group since January 2022, primarily exports petalite and spodumene concentrates. The Zimbabwean government plans to ban the export of lithium concentrates to encourage local processing, aiming to enhance the economic benefits of lithium extraction. Additionally, Bikita Minerals champions sustainability, having completed a 12 MW photovoltaic solar plant and contributed to the US$22 million Tokwe-Bikita powerline construction.
