Zimpapers Logo

Oliver Kazunga Senior Business Reporter

President Mnangagwa has applauded Prospect Lithium for embracing value addition and beneficiation in line with the thrust of the Second Republic to diversify the economy following its US$300 million investment into a lithium processing plant.

Officially commissioning the plant on Wednesday, President Mnangagwa said the Prospect project was a testament that Zimbabwe was open for business and his administration’s commitment to broadening the economic base to create quality jobs.

Prospect employs 3000 people and the processing plant has an annual capacity to produce 4,5 million of lithium concentrate. Value addition and beneficiation are among the strategies the Government has adopted to boost exports and tax revenue while encouraging the formation of new businesses and creating employment.

In December last year, the Government imposed a ban on the export of unprocessed lithium in a bid to encourage miners to set up beneficiation facilities.

“Our aim as a nation is to achieve national goals that include the transformation of the economy through value addition and beneficiation,” said President Mnangagwa.

“Prospect Lithium Zimbabwe’s initiative, therefore, is an important step towards achieving these goals and reflects our determination to take Zimbabwe to greater heights.

“The lithium processing plant is a significant stepping stone towards making Zimbabwe an industrialized, prosperous and resilient nation. The project also emphasizes the company’s commitment to corporate social responsibility,” he added.

As part of its corporate social responsibility programme, Prospect has been involved in programmes that include the construction and refurbishment of classroom blocks in the Goromonzi District.

“A number of donations have also been made to various schools. The company has also contributed to infrastructural development through rehabilitation of the Goromonzi/Mutare Road highway, widening of the Goromonzi/Arcadia Mine Road and construction of two bridges.

“Construction of a police base by the company will go a long way in ensuring that crime rate is reduced and security in the host community is maintained. “All these initiatives are a clear indication that companies should understand the need to give back to the communities hosting their projects,” said President Mnangagwa.

“This is a reminder that the intrinsic values of companies should emphasize sustainable development, and they must always remember the welfare of the community hosting their operations,” he added.

President Mnangagwa said the mining industry was critical in the attainment of the country’s Vision 2030 of becoming an upper-middle income economy. He said the Government set and achieved its target to grow the mining economy to US$12 billion by 2023.

“I am informed that the US$12 billion mark has been realised through various mining investments across the country which include this Prospect Lithium Zimbabwe’s US$300 million lithium project that we have gathered here for. This project is therefore a significant accomplishment that will yield extensive advantages for our blessed nation in line with the National Development Strategy 1 goals.”

Speaking at the same occasion, Mashonaland East Minister of Provincial Affairs and Devolution Apollonia Munzverengwi said the commissioning of the plant was a milestone in the socio-economic transformation and prosperity of the country.

“This is an important landmark event in Mashonaland East Province and the nation’s history considering the processing plant is one of the biggest lithium plants in Africa. PLZ embarked on the project on April 20 last year, when its parent company Zhejiang Huayou Cobalt Company Limited, acquired the Prospect Lithium Zimbabwe assets and began the work of building one of the world’s most sophisticated plants for the processing of hard rock lithium mineral resources.

“Construction work began in May 2022 and by January this year, they had finished the construction phase, which was a record for the company.

“It is with a great sense of responsibility that Prospect Lithium even, before its main operations had embarked on vibrant corporate social responsibility projects.

“This comes as the company recently announced that it had started implementation for new community-led projects to be undertaken this year 2023, building on the work it did last year in education, health, security and infrastructure,” she said.

The project has brought several benefits that include employment creation and promotion of trade and investment as well as high-impact projects in the surrounding communities through the corporate social responsibility initiative.

This year, Prospect said it would focus on infrastructure development and agriculture, increased company-wide commitments to reduce its environmental footprint, and boost health and education in the communities.

It is also set to support the educational needs of underprivileged children, sponsoring sporting disciplines, supporting health and disability centers and training farmers.