Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Cluff Africa Ltd. signed a non-binding agreement with Zimbabwe’s sovereign wealth fund to develop a lithium mine in the southern African country.
Cluff will be assigned a 45% share of licenses at Sandawana, founder Algy Cluff said in an emailed statement, without disclosing financial terms.
Zimbabwe is seeking to attract investors after lithium prices steadied following a boom-to-bust period that left an array of stalled projects, scrapped deals and production cuts. State miner Kuvimba Resources Ltd. has said it’s identified a lithium ore resource of 38 million tons at Sandawana in the country’s south.
“We can now begin to develop what we believe to be a world-class, high-grade lithium resource,” Cluff said. The company will start a drilling program as soon as it has signed a final agreement with the wealth fund, it said, without giving a timeframe.
Industry veteran Algy Cluff has previously invested in Zimbabwe’s gold sector, but is best known for his North Sea oil and gas company Cluff Natural Resources Plc — now Deltic Energy Plc.
Zimbabwe’s wealth fund also holds gold, nickel and platinum mines. Calls to the fund went unanswered.
(By Godfrey Marawanyika)
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