The Nigerian giant sources lithium from Zimbabwe, while Africa supports local development of the mining sector

Nigerian billionaire Benedict Peters will launch lithium production in Zimbabwe next year, fueling gains in Africa’s lithium market.

SPECIAL REPORT | PTAKA AGENCY | According to Mining.com, Bravura Holdings, owned by Nigerian industrialist Benedict Peters, will begin production at its Zimbabwean lithium project in 2025, boosting Africa’s push to retain more profits from the global lithium boom. In March, African intelligence reported that a Nigerian billionaire had obtained an exploration license in the key Kamativi mining area.

Peters’ foray into lithium mining highlights the opportunities open to entrepreneurs to capitalize on Africa’s rapidly growing green minerals sector. Bravura will begin production at the Kamativi lithium tailings project in Zimbabwe early next year, producing 30,000 tonnes of lithium-bearing spodumene concentrate.

Gbenga Ojo, CEO of the Bravura group, confirmed the company’s plans to complete the project by 2025, despite a significant drop in lithium prices, Bloomberg reports.

“We are very confident about this,” Ojo said in Harare. “Even if it stays like this, we will continue with our project.”

Prices of lithium, a key ingredient in electric vehicle batteries and renewable energy storage, have fallen by about 80% from their 2022 highs due to oversupply.

However, Bravura is undeterred by current market conditions. The company plans to produce more than 30,000 tons of spodumene concentrate annually by reprocessing waste from a tin mine that ceased operations three decades ago.

The government of Zimbabwe owning a 40% stake in the project illustrates a growing trend of African countries securing larger stakes in mining ventures to maximize local benefits.

Historically, Africa’s rich mineral resources have often been exploited by foreign companies, with minimal returns to local economies.

The lithium boom offers an opportunity to change this dynamic, ensuring the continent’s resources drive local development and industrialization.

However, the quest to maintain higher profits from Africa’s lithium boom is not without its challenges. Infrastructure deficits, regulatory hurdles and market volatility are major obstacles.

In Zimbabwe, the Sandawana mine was the center of a lithium rush, with thousands of artisanal miners working in dangerous conditions, as evidenced by reports of child labor and deaths following mine collapses.

But there has been a change. Zimbabwe announced a ban on unprocessed lithium exports in December 2022, only allowing shipments of concentrates to encourage local processing.

The move, in line with the Basic Mineral Export Control Act, is aimed at supporting the domestic industry and retaining more value in the country.

Similarly, Namibia has also banned the export of unprocessed green minerals, including lithium, cobalt and graphite, with exceptions requiring special authorization from the Ministry of Mines.

Ghana is also taking significant steps to control its green mineral resources. The country recently approved a green minerals policy, pending parliamentary approval, aimed at ensuring that the exploitation of key minerals benefits local people.

“The overarching objective of this policy is to ensure that the exploitation of these key minerals benefits the people of Ghana, the true owners of these resources,” said Samuel Jinapor, Ghana’s Minister of Lands and Natural Resources.

The global lithium market is currently dominated by Australia, Chile and China, which together produced over 90% of the 130,000 tonnes in 2022.
However, with demand set to increase sixfold by 2035 to meet climate goals, market dynamics could change significantly.

Exploration projects are accelerating around the world and Africa is no exception. Significant lithium deposits have been identified in Zimbabwe, Namibia, Ghana, the Democratic Republic of the Congo (DRC), Mali and Ethiopia.

Several projects on the continent have received support from major players in the battery and raw materials industry such as CATL, Ganfeng Lithium and Glencore.

However, most African lithium projects remain at the exploration or development stage.

Benedict Peters, best known for his ventures in the oil and gas sector through his Aiteo Group in Nigeria, is diversifying into the mining industry with this significant project.

Its move into lithium mining highlights a broader trend of energy sector players moving towards sustainable and future-proof resources.

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SOURCE: Seth Onyango, Bird Story Agency