ZIMBABWE’S sovereign wealth vehicle, the Mutapa Investment Fund (MIF), last week announced plans to overhaul its mining portfolio, abandoning a traditional holding-company structure in favour of commodity-specific verticals as it seeks to improve efficiency, accountability and long-term returns. Under the previous arrangement, mineral assets held by the country’s sovereign investment arm were managed through a complex web of entities under Mutapa, including Kuvimba Mining House, the Industrial Development Corporation and various minority shareholders. The new structure will comprise three core clusters — Mutapa Base Metals, Mutapa Gold Resources, Mutapa Platinum — as well as Mutapa Energy, which will be led by Innocent Rukweza (IR). Our deputy news editor Tinashe Kairiza (TK) sat down with Rukweza to discuss his vision for the Mutapa Energy cluster, Sandawana Mine and the Fund’s broader strategy. Below are excerpts from the interview:
TK: You now head the Mutapa Investment Fund Energy cluster. What does that entail?
IR: The Mutapa Energy Minerals entity is very strategic to both the Fund and the nation as a whole.
Lithium, which is a key mineral within the cluster, is a critical component in the global energy transition.
Together with copper, cobalt and manganese, it is being driven by surging demand for energy storage solutions and electric vehicles.
TK: What is the amount of lithium stockpiled at Sandawana Mine, and what is its estimated value?
IR: We currently hold over 600 000 tonnes of lithium of varied grades and recoverability, with an estimated value ranging between US$8 million and US$14 million.
TK: What are the short-term plans to boost production at Sandawana, and how much investment is required?
IR: In the short term, infrastructure remains the key constraint we need to address.
The road to Sandawana is a critical strategic imperative that the company must urgently attend to.
The turnaround time for transporting ore for toll processing at the Gwanda Lithium Plant remains very poor, and during the current rainy season the mine becomes inaccessible, severely hampering returns and profitability. The road works are estimated to cost around US$16 million.
The entity is currently going through a selection process for service providers. Power and water also remain challenges, although they are not as impactful as road infrastructure.
An investment of more than US$20 million has been earmarked for these critical projects.
TK: Lithium prices, which had softened, are projected to firm. What does this mean for Sandawana Mine?
IR: Improved prices are a very welcome development and will ease cash flow challenges in the short term. A number of key projects and corporate social responsibility (CSR) initiatives had been shelved due to funding constraints.
With firmer prices, we expect to revisit these projects and deliver on earlier commitments to both shareholders and the local community. Most importantly, improved cash flows will allow us to accelerate exploration of Block B and Block C, which is critical for unlocking additional projects and establishing a clearer picture of the company’s true lithium potential.
TK: What plans are in place to establish a beneficiation plant?
IR: Beneficiation of mineral ores — lithium in particular — is central to the government’s thrust under NDS 2, and we are working tirelessly to meet the set targets. A phased approach is underway, beginning with the establishment of a concentrator valued at US$250 million. We are targeting to commence construction by mid-year at the latest, with a construction timeline of between 18 and 24 months.
The final stage will be the establishment of a sulphate plant to produce battery-grade lithium sulphate. Sandawana is set to beneficiate lithium and progressively move upstream in the value chain, creating jobs and technical competencies locally.
At present, all lithium ore and concentrate is exported to China for further processing, reflecting the country’s dominance in lithium battery processing and electric vehicle production.
TK: How much has Sandawana Mine invested under its corporate social responsibility policy?
IR: Due to previously depressed prices, a number of CSR plans remain unfulfilled as a result of cash flow challenges.
However, significant resources are now set to be channelled towards CSR initiatives, including the construction of a clinic, provision of water to surrounding communities, support for local enterprises, and alignment with the NDS 2 thrust on village enterprises.
Infrastructure development will also have a positive socio-economic impact on communities around Sandawana.