Modern Mining March 2022

 Demand for lithium has increased significantly in recent years, primarily driven by decarboni- sation and mass adoption of electric vehicles.  Major supply deficits have been forecast in the near term, resulting in increases in pric- ing, and while new supply is incentivised, new projects take time and effort to develop before they become producing assets.  While supply and demand dynamics in every market inevitably change over time, Hosack sees a compelling multi-decade opportunity for battery and electrification minerals in Zimbabwe as the decarbonisation movement grows globally. to find suitable projects that fit within its strategy. “There will be several key milestones over the next 18 months, including analysis and acquisition of potential projects, exploration programmes such as rock chip sampling, trenching, and drilling as well as technical and economic assessments to systemati- cally de-risk and prove the viability of projects that we may acquire,” he concludes.  Lithium market

Above: The Arcadia Lithium project in Zimbabwe.

ways, including designating Arcadia with National Project Status, processing grant approvals and per- mits timeously, and declaring the project a Special Economic Zone early in 2019. This support has helped to ensure the project retains its status as one of the best, untapped lithium deposits globally, and ensures that Zimbabwe attracts the right calibre of investor to fund and further develop its lithium indus- try,” notes Hosack. Although Prospect Resources intends to dis- tribute the bulk of its net sale proceeds to its shareholders, it will retain a cash balance of between AUD$30 million and AUD$60 million to progress bat- tery and electrification metal projects in Zimbabwe and evaluate, acquire and advance new battery and electrification metals projects globally. “Our growth strategy is underpinned by our proven ability to leverage our capabilities in pro- gressing projects and delivering value, evidenced with Arcadia, where we take the project from dis- covery and advance it through the development process. We see the largest upside opportunity in securing exploration projects with near term resource targets and with the Zimbabwean gov- ernment’s support, systematically de-risking them, proving up the value with each objective achieved. “Having the skills and capabilities within the board and team, and substantial experience within the lithium market, we believe we are able to pro- duce favourable outcomes on an accelerated basis, in relation to project development timelines,” explains Hosack. Over the next few years, the company expects Prospect Resources is already scoping out new opportunities in Zimbabwe and sub-Saharan African countries– Hosack.

Left: Prospect Resources has sold its 87% interest in the Arcadia Lithium project to Zhejiang Huayou Cobalt for around $378-million.

Prospect Resources completed construction, commissioning and commenced production on the Arcadia pilot plant.

March 2022  MODERN MINING  13