By Abdul Rahman Bangura–
NEW AFRICA BUSINESS NEWS (NABN) Freetown, Sierra Leone- The Prospect Resources Plc, an architect of the Arcadia lithium project in Zimbabwe, asserts robust need from customers in battery, glass and ceramics markets will
influence material advancements in global prices over the following periodic years. The company affirms that, current impetus packages in Europe around improving electric vehicle adoption and growth in these markets, firmly positions the EU to become the largest electric vehicle market and overtake China.
Lithium (chemical grade or spodumene) is a key intake in the manufacture of electric car batteries and Zimbabwe, the world fifth largest producer, continues to profit once Arcadia (which becomes its second mine) commences production. In this regard, the mineral, which is available in Zimbabwe in limitless abundance, has been designated by the Government as one of the fundamental components of the enterprising target to thrive the mining sector into a $12 billion industry by 2023; with lithium accounting for $500 million.
Mining contributes 60% of the annual foreign exchange inflows into Zimbabwe and the Government sees the sector fixing short to medium term growth. Averse this stage, the clean energy policies remain to increase impetus and in turn, boost the requirement for lithium to meet the growing global demand.
Moreover, the company has approved off take agreements with global ogres in the production of glass and ceramics, for which petalite (technical grade lithium) is a major input. This, the Australia Stock Exchange (ASX) listed entity said, strengthens its strategy to commence near term production of high value petalite and spodumene near
Harare, to take advantage of this rising market prices globally.
“We have set ourselves clear targets in 2021, focused on rapid development of Arcadia to take full advantage of the lithium market resurgence,” asserted Prospect in a statement ratified by Managing Director Sam Hosack.
Prospect announced its robust objective was high purity petalite and the recourse to vend into the glass and ceramics market, expanding this gives rise to the company unique and presents a long-term competitive advantage. The company has provided a Definitive Feasibility Study showcasing the strong financial capacity of the Arcadia project, finalized test work that materially enriched petalite comeback whilst also mitigating technical risk.
Also, the company has endorsed an off take agreement with European industrial mineral leader Sibelco N.V further strengthening Prospect’s off take position. The minor lithium mining firm previously finished off a transformational capital raise exercise to fast track Arcadia as Africa’s leading lithium producer. In October, Prospect presented to
investors a completely defined footpath to production. This was a key driver in the irresistible accomplishment of the capital raise, which enticed institutional investors.
Prospect now has the reserves to promptly develop a pilot plant at Arcadia which will reproduce specimens that will illustrate Prospect’s financial and specialized purposes. Vastly honorably, it improves the project finance timelines as the company concentrates on a lower capital expenditure plant that allows for staged development of operations.
For New Africa Business News (NABN) Abdul Rahman Bangura Reports, Africa Correspondent
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