EV/Lithium, page-424

Lithium Mines in Africa: Key Companies and Investments (Updated 2024)


Melissa Pistilli
May. 22, 2024 02:00PM PST
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Zimbabwe is the only African country that's a top 10 producer of lithium, but companies are exploring other parts of the continent for the battery metal. Here's a look an overview of key players.

Moving to greener sources of energy and reaching the net-zero goals set by governments around the world means more demand for key battery metals such as lithium.

In the past few years, the race to secure a steady and quality supply of lithium has heated up. The COVID-19 pandemic, paired with other factors such as the Russia-Ukraine war, revealed the vulnerabilities of the lithium supply chain and woke the western world up to its dependence on China.

Legislation such as the US Inflation Reduction Act and the EU's Critical Raw Materials Act are just some examples of how governments are looking to strengthen their positions in the critical minerals sector.

When it comes to lithium, developing new sources of supply is essential if the energy transition is to take place — this is why lithium in Africa presents a unique opportunity.

Does Africa produce lithium?

Multiple countries in Africa produce lithium, and Zimbabwe is a top 10 global producer of lithium. The country accounted for about 3,400 metric tons (MT) of lithium supply in 2023, and total Zimbabwe lithium reserves stand at 310,000 MT, as per the US Geological Survey.

That said, there are a number of other African countries that have lithium resources, including Namibia, Mali, the Democratic Republic of Congo (DRC) and Ghana. All in all, Africa accounts for about 5 percent of global lithium resources.

Benchmark Intelligence is projecting that in 2024, the African continent will account for 10 percent of global lithium production.
Lithium mines and projects in Africa

Many countries in Africa are looking to develop lithium resources, and some are even producing the metal.

Here the Investing News Network has listed some of the key mines and deposits being developed in Africa by publicly listed companies. The assets are listed in alphabetical order for each country.
Zimbabwe

"Chinese firms have spent more than $1 billion over the past two years to acquire and develop lithium projects in Zimbabwe, which holds some of the world's largest hard rock lithium reserves," reported Reuters in July 2023.

Arcadia
The Arcadia lithium project is Zhejiang Huayou Cobalt's (SHA:603799) largest single investment in Africa to date. The Chinese company bought the asset from Prospect Resources (ASX:PSC,OTC PinkRSTF) and its partners in 2022. Zhejiang Hauyou Cobalt said it commissioned its US$300 million lithium concentrator plant at Arcadia in July 2023 and the plant has the capacity to produce 450,000 MT of lithium carbonate per year.

Bikita
Bikita is already in production and has estimated ore reserves of 29.41 million MT. In 2022, China’s Sinomine Resource (SZSE:002738) bought the mine in a US$180 million deal. It has also spent another US$300 million to expand the existing plant and to construct a new lithium processing plants to produce a total 300,000 MT of spodumene concentrate and 480,000 MT of petalite per year. Petalite is used for ceramics and glass production, says Reuters.

In July 2023, Sinomine announced the completion of its spodumene concentrate plant for the production of battery-grade lithium.

Kamativi
The Kamativi lithium mine is a joint venture between Yahua Group (SZSE:002497) subsidiary Sichuan PD Technology Group and local firm Defold Mine.

The operation is currently in the first phase of production with an annual output of 300,000 MT of raw spodumene ore and 50,000 MT of spodumene concentrate. The second phase is expected to start in June of this year, and production is slated to increase to 2.3 million MT of raw ore and 300,000 MT of spodumene concentrate annually.

Sabi Star
The Sabi Star lithium-tantalum project is located in the east of Zimbabwe's Mashonaland province. The project is designed to produce 900,000 MT of raw ore per year, equivalent to about 200,000 MT of lithium concentrate. China’s Chengxin Lithium (SZSE:002240) has invested US$76.5 million for a majority stake in the asset. In May 2023, Chengxin commissioned a 300,000 metric ton per year lithium concentrator at the mine. Lithium concentrate production at the mine will be powered by a 15MW coal-fired plant.

Sandawana
Originally owned by Rio Tinto (ASX:RIO,NYSE:RIO,LSE:RIO), the Sandawana mine complex is now owned by state-controlled Kuvimba Mining House. The company estimates it to be one of the largest lithium deposits in the world. The company intends to invest about US$220 million into developing Sandawana, which will include the construction of a processing plant.

Zulu
The Zulu lithium-tantalum mine is operated by Premier African Minerals (LSE:PREM). Chinese company Canmax Technologies (SZSE:300390), formerly Suzhou TA&A Ultra Clean Technology, is a major investor in Premier African Minerals. Canmax, together with CATL (SZSE:300750), the world’s top battery maker, owns Yibin Tianyi — a major Chinese lithium hydroxide producer.
In 2022, Canmax invested US$35 million to help with the construction of Zulu’s processing plant, which is expected to have an annual output of nearly 50,000 MT of spodumene concentrate. Despite delays, Zulu’s processing plant is now fully commissioned and producing spodumene concentrate as of April 2024.

Premier African Minerals also holds a 50 percent interest in another lithium project in Zimbabwe, Mutare. The remaining interest in the asset is owned by Li3 Lithium (TSXV:LILI).
Namibia

Karibib
Lepidico (ASX:LPD,OTC Pink:LPDNF) is developing the Karibib asset in Namibia, a project that has an expected mine life of 14 years. An updated ore reserve estimate from December 2022 shows the asset has 2.29 million MT in proved reserves and 5.98 million MT in probable reserves.

Uis
Andrada Mining (LSE:ATM), formerly Afritin Mining, is the operator of the Uis mine in Namibia, which was once the world's largest hard-rock, open-cast tin mine. The asset produced its first lithium concentrate in the form of a high-purity petalite concentrate in May 2023. Meanwhile, Andrada is conducting further development test work to explore the production of lithium for the battery market and expects production of 100 MT of saleable technical grade lithium concentrate per month by Q2 2024.
Democratic Republic of Congo

Manono
AVZ Minerals (ASX:AVZ) has a 75 percent interest in the Manono project, located in Southern DRC. The remaining interest is owned by state-owned company Cominiere. A definitive feasibility study published in 2020 shows a mine with a life of 20 years and the ability to produce 700,000 MT of high-grade SC6 lithium and 45,375 MT of primary lithium sulfate per year.
There is currently a dispute around the ownership of Manono, which has resulted in AVZ Minerals suspending trading on the ASX pending a resolution that will allow it to move forward with the project.
Mali

Goulamina
Located in Southern Mali, the Goulamina project has a mine life of 21 years, according to a definitive feasibility study from December 2021. Average annual spodumene concentrate production is expected to be 506,000 MT in Stage 1, rising to 831,000 MT in Stage 2.
Leo Lithium (ASX:LLL,OTC Pink:LLLAF) was developing Goulamina together with Chinese top lithium producer Ganfeng Lithium (OTC Pink:GNENF,SZSE:002460,HKEX:1772); however, in May 2024 it was reported that Ganfeng will acquire Leo Lithium's 40 percent stake in the project for more than US$342 million. First spodumene concentrate production is forecasted to commence in Q3 2024.

Bougouni
Kodal Minerals (LSE:KOD) is developing the Bougouni project in Southern Mali. The company has already received a mining license and is planning the construction phase of the project. According to a definitive feasibility report from 2020, Bougouni has a mine life of 8.5 years and will produce an average of 220,000 MT of 6 percent spodumene concentrate per year. Bougouni is slated to reach commercial production by the end of 2024.

London-listed Kodal Minerals recently announced it had met the conditions for a US$117.75 million funding package from its Chinese partners Hainan Mining (SHA:601969), which will also give Hainan a 51 percent stake in the project.
Ghana

Ewoyaa
Expected to be Ghana’s first lithium-producing mine, Ewoyaa is Atlantic Lithium’s (LSE:ALL,OTCQX:ALLIF) flagship project. The company has secured funding through an agreement with Piedmont Lithium (ASX:PLL,NASDAQLL).

Ewoyaa’s mineral resource estimate shows 35.3 million MT at 1.25 percent lithium oxide, including 28 million MT in the measured and indicated categories. The June 2023 definitive feasibility study shows the potential for the production of 3.6Mt spodumene concentrate over a 12-year life of mine.
Atlantic Lithium received a mining lease for the project in October 2023, and the company is currently working to upgrade the project's mineral resource estimate, which is expected to be completed by mid-2024.

Does China own lithium mines in Africa?

Chinese companies have moved faster than the western world to secure lithium supply in Africa. And it is not just lithium they are looking to lock down — they also have ownership and interests in properties that hold other key metals needed for electric vehicles, such as cobalt and copper.

China plays a key role in the lithium-ion battery supply chain, dominating the midstream when it comes to lithium. Despite this, in terms of production China is behind Australia, known for its hard-rock assets, and Chile, known for its brines. This is why Chinese companies have invested heavily in lithium sources in other regions, including South America and, of course, Africa.

In Zimbabwe, Chinese companies have reportedly invested over US$1.4 billion in lithium assets.

Furthermore, in 2022, Zimbabwe approved a proposal by a group of Chinese investors to establish a US$2.83 billion battery metals district to process battery metals, including lithium.

That investment is paying off in 2024, as Zimbabwe is expected to account for 80 percent of Africa's lithium output for the year, reports the South China Morning Post.

“China holds the majority of the world’s refining capacity. However, their domestic mine supply cannot keep up,” states Claudia Cook, a lithium analyst at Benchmark Minerals. “What sets China apart is that it already has the supply chain to utilise African lithium resources, as well as the expertise and capital.”

Namibia is next on the Chinese investment list. Huayou Cobalt has a stake in Australia’s Askari Metals (ASX:AS2), which is exploring Uis and Erongo. Meanwhile, Chinese Xinfeng Investments has been exploring for lithium in the country since 2019. This year, Namibia will account for about 17 percent of total lithium production out of Africa.

In the DRC, Zijin Mining Group (OTC Pink:ZIJMF,HKEX:2899) teamed up with state-owned Cominiere in a joint venture, Katamba Mining, securing rights to two greenfield exploration and mining projects near the Manono asset.

Lithium in Nigeria is a rather new sector in the global market as commercially viable deposits were only discovered as recently as 2018. A number of lithium processing plants are under construction in Nigeria. Although one major one is under the control of some recognizable names in China's lithium sector such as Gangfeng and Tianqi, as Bloomberg points out, these "copycat Chinese lithium firms" have "no formal affiliation" with their namesakes.

In May 2024, the first lithium processing plant in Nigeria was commissioned by Chinese firm Avatar New Energy Materials, which says it will have a processing capacity of 4,000 MT per day.
That said, Europe has now also set its eyes on the African continent, with the bloc hoping to kick off negotiations for partnerships that will allow it to secure supply of critical raw materials.

For its part, the US does not want to fall behind when it comes to Africa, even though the country has been pushing for more supply from domestic sources and free trade agreement countries. In 2022, US President Joe Biden said the US is "all in" on Africa's future, pledging to invest US$55 billion in food security, climate change, trade partnerships and other issues.
Which countries in Africa have banned exports of unprocessed lithium?

African countries are well aware of the need for the critical raw materials they have, and are looking for ways to add more value to what they produce — meaning not just mining, but processing materials before export.

"We are going to insist that all lithium mined within the country has to be processed in the country,” Tom Alweendo, Namibia's Minister of Mines and Energy, told Reuters.

Namibia has banned the export of unprocessed lithium and other critical minerals in a move to profit from the energy transition by processing more minerals in the country. Zimbabwe took a similar step, banning lithium ore exports and allowing only certain concentrates to be shipped out from the country.

Following Namibia and Zimbabwe's lead, Nigeria has also set restrictions on lithium exports and mandated that companies wishing to set up lithium mining and export operations must first build processing and refining plants in the country.