Harare, (New Ziana) – The government has approved the setting up of a joint venture company to explore and develop a Lithium mine in Arcturus, Goromonzi on the eastern outskirts of Harare.
Zimbabwe has the largest Lithium reserves and mines in Africa, while globally the country ranks high amongst the leading lithium producing and supply countries after Chile, Australia, China, Argentina and Brazil.
The exponential global demand for the mineral driven by the rising production of electric vehicles and other electronics seen as essential for energy transition based on zero carbon emission.
Briefing the media on Tuesday, Information, Publicity and Broadcasting Services Minister, Dr Jenfan Muswere said cabinet had given the nod for the proposed partnership between the Mining Promotion Corporation and Prospect Brooke Resources (Private) Limited (PBR) to conduct exploration and mine development over Arcturus exclusive Prospecting order 1842 following a presentation by the Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube.
“The joint venture seeks to prospect and explore for lithium and pegmatite minerals on 52 600 hectares in Goromonzi, Mashonaland East province. Prospect Brooke Resources (PBR) is a Zimbabwean-based private company incorporated in terms of the Companies and Other Business Entities Act [Chapter 24:31],” said Dr Muswere.
“In terms of the Agreement, a special purpose vehicle, the MPC JV, will be established in which Prospect Brooke Resources shall hold 70 percent shareholding and the Mining Promotion Corporation 30 percent at the exploration stage.
Prospect Brooke Resources will mobilize the entire amount required for exploration, and Mining Promotion Corporation is not expected to make any financial contribution towards this stage.” He said PBR has demonstrated technical and financial capacity to undertake the project and exploration is expected to commence once the Joint Venture Agreement is signed by the parties.
Prospecting and exploration are estimated to take not more than five years from the commencement date.
The Joint Venture shareholding structure will be renegotiated after the exploration stage if the project proceeds to mine development and commences mining activities. The Joint Venture Agreement is in line with the standing policy on Public Private Partnerships (PPPs).
New Ziana
