China Citic Bank International contributes to $90 million syndicated loan for Bikita Lithium Mine Acquisition Project

Shanghai Pudong Development Bank and China Citic Bank International contribution to $90 million syndicated loan for Bikita Lithium Mine Acquisition Project In April 2022, Sinomine Resource Group acquired a 100% ownership stake in Bikita Minerals (Private) Ltd — a special purpose vehicle and project company responsible for the development of the Bikita lithium mine in Zimbabwe — for $180 million.

It did so through the acquisition of the equity stakes of two Mauritius-incorporated companies (African Metals Management Services and Southern African Metals and Minerals) in Amzim Minerals Limited and African Minerals Limited (which, prior to the acquisition, held 29.7% and 70.3% equity stakes in Bikita Minerals (Private) Ltd, respectively).

In order to help facilitate the acquisition, Sinomine Resource Group secured a $90 million (RMB 585 million) syndicated loan from China Citic Bank International and Shanghai Pudong Development Bank in February 2022.

Sinomine Resource Group began construction of a lithium beneficiation plant at the Bikita mine in June 2022. Construction was completed in July 2023.

By September 2023, the mine had exported 7,000 tons of spodumene concentrates and it was targeting sales of around 70,000 tons by August 2024.

As of October 2023, Bikita Minerals was planning to install a 15MW solar plant to ensure self-sufficiency and reduce the cost of power supply.

It was also close to completing the construction of a 130 km, 132/33 kVA electricity transmission line from Tokwe to Bikita and a 132/33kV substation in Bikita.

The transmission line and substation are expected to cost $20 million with an extra $2 million earmarked for electrification of Bikita, Zaka, and Gutu districts.

Bikita has entered into a public-private partnership (PPP) with state-owned utility Zimbabwe Electricity Distribution Company (ZETDC) to develop the infrastructure.

Sinohydro Corporation was selected to build the project in October 2022; a public-private partnership agreement was signed in February 2023. It is reportedly being financed via a loan from China Citic Bank International.