HARARE : China’s Zhejiang Huayou Cobalt said on Wednesday it would buy Prospect Lithium Zimbabwe and its related creditor’s rights for a combined US$422 million.
Huayou Cobalt Executive Vice-chairman George Fang told Reuters in September that the company was seeking to invest in lithium mining and processing, as China’s biggest cobalt refiner strives to expand its production of minerals for the electric vehicle (EV) market.
Although Fang did not disclose targeted assets, he said Huayou Cobalt was looking at lithium opportunities, along with its partners, in Africa, Australia, South America and China’s western region Tibet.
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.