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China's Huayou buys lithium mine in Zimbabwe for $422 mln

• Huayou to buy Arcadia mine owner Prospect Lithium Zimbabwe
• Cobalt giant has been stepping up investments in lithium

China's Zhejiang Huayou Cobalt said on Wednesday it would pay a total $422 million to acquire the Arcadia hard-rock lithium mine in Zimbabwe.

The move marks Huayou's second foray into lithium, a key ingredient in rechargeable batteries, in the space of a week.

It is the latest acquisition of overseas battery mineral resources by Chinese companies looking to shore up supply to meet demand from the burgeoning electric vehicle (EV) sector.

Huayou, the world's biggest producer of cobalt, another battery metal, in 2020, said in a filing it would pay $388.8 million for Australia-listed Prospect Resources Ltd's 87% stake in Arcadia owner Prospect Lithium Zimbabwe.

It will pay another $44.2 million for the 6% stake held by Zimbabwean professor Kingston Kajese and the 7% held by Tamari Trust, which previous Prospect filings show is linked to Paul Chimbodza, executive director of Prospect Lithium Zimbabwe.

The Arcadia project aims to process 2.4 million tonnes of ore per year but has not yet reached commercial production.

Prospect Resources said in July the first batch of petalite from pilot production had been delivered to offtake partner Sinomine and that it was also working on spodumene samples.

Spodumene and petalite are lithium-bearing minerals.

Zimbabwe is desperate to attract investors into its mining sector, which it says will drive the recovery of its stricken economy.

It has opened its doors to Chinese firms, which now operate several chrome, coal and gold mines.

Huayou's Executive Vice-chairman George Fang told Reuters in September that the company was seeking to invest in lithium mining and processing, including in Africa.

Last Friday, Sichuan New Energy Power Co Ltd said it agreed a lithium production and battery recycling tie-up with Huayou in China.

www.reuters.com

China's Huayou agrees lithium production, battery recycling tie-up

Chinese cobalt maker Huayou is teaming up with state-controlled Sichuan New Energy Power Co Ltd to produce lithium and recycle spent batteries, a Sichuan New Energy filing said on Friday.

Huayou, the world's biggest cobalt refiner in 2020, has been looking at investing more in lithium projects in China and overseas to add to its battery metal offering, a company executive told Reuters in September.

Both lithium and cobalt are key ingredients in electric vehicle (EV) batteries.

Sichuan New Energy said it had signed a strategic cooperation agreement with Huayou Holding, parent of Zhejiang Huayou Cobalt, under which the partners will collaborate in producing lithium chemicals, as well as in the acquisition and development of important mineral resources at home and abroad.

www.reuters.com


*To Remind,

China's Huayou Cobalt seeks lithium as expands battery minerals portfolio

Zhejiang Huayou Cobalt is seeking to invest in lithium mining and processing, its executive vice chairman told Reuters, as China's biggest cobalt refiner strives to expand its production of minerals for the electric vehicle (EV) market.

"We will pay more attention, not only in nickel and cobalt, but also lithium resources development, both inside China and outside of China," George Fang said in an interview for the upcoming Reuters IMPACT conference.

Huayou Cobalt was looking at lithium opportunities, along with its partners, in Africa, Australia, South America and China's western region Tibet.

Fang did not disclose targeted assets or the possible size of deals.

"We want to be one of the leaders in the lithium battery material industry," Fang said of the company, which has nickel and cobalt projects in Indonesia and precursor and lithium nickel manganese cobalt (NCM) cathode projects in China.

Huayou Cobalt sources cobalt from Democratic Republic of Congo, which supplies over 70% of the world's cobalt.

The company's Chinese peers, including China Molybdenum , Zijin Mining and Tsingshan Holding Group, are also looking to branch out into lithium.

September 30, 2021

www.reuters.com









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