By Benjamin Wickham
HARARE, March 22 — Chinese battery minerals producer Zhejiang Huayou Cobalt has announced that it has begun trial production of lithium concentrates at its Arcadia mine in Zimbabwe. The mine was acquired from Australia-listed Prospect Resources and its Zimbabwean partners for $422 million in 2022, and Huayou plans to invest a further $300 million to build a plant to process 4.5 million tonnes of lithium ore at the site. The Arcadia mine is expected to produce 50,000 tonnes of lithium carbonate equivalent lithium concentrate, which is a key step in Huayou’s strategy to secure and build a chain of lithium assets.
Huayou is one of the biggest cobalt producers in the world and also has two copper and cobalt projects in the Democratic Republic of Congo, with an annual production of 100,000 tonnes of cathode copper and 10,000 tonnes of cobalt. In addition, the company has three nickel and cobalt projects in Indonesia, with an expected annual production of 225,000 tonnes of nickel and 23,000 tonnes of cobalt products by 2024.
The company has also recently announced a A$2.5 million ($1.67 million) investment in Askari Metals, an Australian-listed company, to advance the exploration of its Uis lithium project in Namibia. This investment is part of Huayou’s plan to secure a chain of lithium assets globally, as the demand for lithium, a key component in batteries, is expected to grow significantly in the coming years as the world shifts towards electric vehicles and renewable energy sources.
The acquisition of the Arcadia mine and the investment in the Uis lithium project in Namibia are significant moves for Huayou, as the company looks to expand its reach and secure a reliable source of key minerals for the production of batteries. The demand for lithium, cobalt, and nickel is expected to continue to rise, as the world shifts towards renewable energy and electric vehicles. Huayou’s investment in these projects is an indication of the company’s commitment to meeting this growing demand and ensuring a reliable supply of key minerals for the production of batteries.
Overall, the trial production of lithium concentrates at the Arcadia mine is a positive development for Huayou and its strategy to secure and build a chain of lithium assets globally. As demand for lithium and other key minerals continues to rise, it will be interesting to see how Huayou and other companies in the battery minerals sector continue to adapt and expand their operations to meet this demand. – Namibia Daily News
