Australian miner sees more growth under new Zimbabwe government

Australian-listed junior miner Prospect Resources says the change of government in Harare bodes well for its future growth because of its focus on promoting inward investment.

Its Arcadia Lithium Project is one of the largest hard rock lithium resources in the world, with about 808 000 tonnes of lithium and was recently granted a national project status.

Emmerson Mnangagwa has taken over from Robert Mugabe as president, and the new leader wants Zimbabwe to partner with international investors to exploit the country’s mineral resources and create employment.

The 2018 national budget announced last week is seen as pro-foreign investment after limiting application of the indigenisation policy to platinum and diamond mining.

“Zimbabwe is set for an economic boom under its new government. The government is promoting inward foreign investment and the creation of new enterprises like the Arcadia Lithium Mine,” Prospect said in a trade update.

Last week, Prospect said its ore reserve estimates at Arcadia Lithium deposit in Zimbabwe have increased by 70 percent to 26.9 tonnes, compared to the 15.8 tonnes estimated after a pre-feasibility study in July. The current reserves give the mine a lifespan of over 20 years.

The miner last month entered into a seven-year offtake agreement with Hong Kong-based Sinomine Resources Exploration. Sinomine will invest A$10 million ($7.5 million) via a share placement, a deal which will make the company a major shareholder in Prospect.

Prospect’s market capitalisation stood at $69.23 million as at December 6, 2017.-The Source

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