Sinomine Resources announced on August 12 that its Zimbabwe-based subsidiary, Masvingo Lithium Technology (Pvt) Ltd, has officially received the Environmental Impact Assessment (EIA) certificate from the Zimbabwean environmental management authority. The company’s 100,000-tonne-per-annum lithium sulphate project has now transitioned from the preliminary preparation phase to full-scale construction.
Located in Zimbabwe’s Masvingo Province, the project is progressing steadily according to schedule. All civil works subcontractor China Railway No.9 Group and installation subcontractor Shandong Dadi have fully mobilized on site. The on-site construction management framework is now largely in place, with civil engineering, equipment installation, and related supporting works commencing successively.
Under the overall construction timeline, the project is slated for completion and commissioning by mid-2027.
The 100,000-tonne lithium sulphate facility is built upon Sinomine’s core mineral asset, the Bikita lithium mine.
In February 2022, Sinomine disclosed its acquisition of the Bikita lithium mine in Zimbabwe. Through its Hong Kong subsidiary, Sinomine Rare Resources, the company acquired 100% of Afmin and Amzim-held by AMMS and SAMM for a benchmark consideration of $180 million in cash, indirectly securing a 74% interest in Bikita. Later that year, following government approval for an internal restructuring and the completion of share repurchase and cancellation, Sinomine confirmed it had obtained 100% equity interest in the Bikita mine.
Notably, Bikita had been loss-making for an extended period prior to the acquisition. According to public filings, the company posted revenues of $5.21 million and $19.66 million for 2020 and 2021, respectively, with net losses of $35.53 million and $2.81 million over the same periods. As of December 31, 2020, and December 31, 2021, Bikita’s net assets stood at $28.16 million and $17.45 million respectively.
Why would Sinomine invest heavily in a loss-making mine?
From the company’s perspective, the move was aimed at “increasing the group’s lithium mineral reserves, raising the self-sufficiency rate of raw materials for its lithium salt business, advancing the implementation of its strategic development plan, and ensuring sustainable growth.”
At the time, China’s new-energy sector was undergoing rapid expansion. Surging sales of electric vehicles drove up demand for battery raw materials, pushing lithium prices steadily higher.
In the very month Sinomine announced the acquisition, the average price of spodumene concentrate had reached $2,635 per tonne, with some institutions forecasting a breach of $3,000 per tonne in the first half of that year. To secure self-sufficiency in feedstock for its lithium fluoride, lithium hydroxide, and lithium carbonate production lines, reduce costs, and bolster its resource self-reliance, the urgency was clear.
Following the acquisition, capacity expansion plans were swiftly put on the agenda.
In March 2022, Sinomine announced it would increase the production capacity of the Bikita 1.2-million-tonne-per-annum expansion project to 2.0 million tonnes per annum. Upon reaching full capacity, the expanded project is expected to produce 412,000 tonnes of lithium concentrate annually, a 66.67% increase over the original 1.2-million-tonne plan, with an additional 165,000 tonnes of product per year, delivering strong economic returns.
The newly launched 100,000-tonne lithium sulphate project represents an extension of Sinomine’s existing industrial chain. Lithium sulphate is a critical intermediate product in the lithium value chain—spodumene concentrate is processed via the sulphuric acid method to produce lithium sulphate solution, which is then further refined through precipitation and other processes to yield battery-grade lithium carbonate. This project effectively bridges the production chain from lithium ore to lithium carbonate, creating a seamless pathway.
Moreover, with Zimbabwe steadily tightening export controls on lithium ore, the lithium sulphate project also lays the groundwork for potential downstream processing operations within the country, enhancing Sinomine’s local value-added capabilities.
Source: WeChat Official Account——电池工业网
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