News / National
Lithium investor begins US$22m power line project
01 May 2023 at 08:09hrs | Views
LITHIUM giant Bikita Sinomine has started work on the US$22 million (132KVA) power line stretching from Tokwe to Bikita in Masvingo Province.
The 120km power line is meant to provide power to the Lithium mine but along the way it will electrify Bikita, Gutu and Zaka communities as well as business centres. The company has set aside US$2 million for the electrification of the target rural areas.
The power line will guarantee Bikita Sinomine reliable power supplies for its mining and processing operations in Bikita.
In an interview the mine manager, Mr David Mwanza said the Tokwe to Bikita power line project is part of the company strategy to have reliable, secure and affordable power for its operations while at the same time providing electricity to communities in Bikita, Gutu and Zaka.
"This US$22 million project will guarantee us adequate and reliable power for our operations while at the same time providing electricity to communities.
"We have set aside US$2 million for the rural electrification programme," he said.
The mine has invested US$200 million in putting up a Spodumene Processing Plant and Pestilent Plant which both require constant power supply.
Mr Mwanza said work on the power line started three weeks ago and is set to be completed by end of December this year.
Bikita Sinomine is this year targeting US$750 million in annual revenue, a significant increase from the US$47 million registered last year.
"The increase in annual revenue is however, dependent on the completion of the two new plants (Petalite and Spodumene) in June and July respectively," said Mr Mwanza.
Finance manager Mr Amanda Makausi projected that 2024 annual revenue could hit the US$1 billion mark.
"The US$300 million takeover of Bikita minerals by Chinese investor Sinomine has resulted in rapid growth from February 2022 production figures of 3 000 tonnes to 10 000 tonnes per month. We expect production to treble to 30 000 tonnes per month once the new plants are commissioned," he said.
The increase in production, Mr Makausi said, has significantly increased the mine's contribution to the fiscus.
He said Bikita Sinomine is now one of the biggest tax contributors in Masvingo province.
"In 2022 we paid US$50 000 in employment tax and in 2023 we are now contributing US$150 000 monthly. We also pay US$3 million a month in other taxes and mining royalties," he said.
The rapid expansion at Bikita Sinomine has led to the creation of 660 jobs with an additional 1 400 expected to be employed after the completion of the Petalite and Spodumene plants.
Management is offering workers competitive salaries and a monthly golden handshake (production bonus) of 50 percent of net salary.
The 120km power line is meant to provide power to the Lithium mine but along the way it will electrify Bikita, Gutu and Zaka communities as well as business centres. The company has set aside US$2 million for the electrification of the target rural areas.
The power line will guarantee Bikita Sinomine reliable power supplies for its mining and processing operations in Bikita.
In an interview the mine manager, Mr David Mwanza said the Tokwe to Bikita power line project is part of the company strategy to have reliable, secure and affordable power for its operations while at the same time providing electricity to communities in Bikita, Gutu and Zaka.
"This US$22 million project will guarantee us adequate and reliable power for our operations while at the same time providing electricity to communities.
"We have set aside US$2 million for the rural electrification programme," he said.
The mine has invested US$200 million in putting up a Spodumene Processing Plant and Pestilent Plant which both require constant power supply.
Mr Mwanza said work on the power line started three weeks ago and is set to be completed by end of December this year.
Bikita Sinomine is this year targeting US$750 million in annual revenue, a significant increase from the US$47 million registered last year.
"The increase in annual revenue is however, dependent on the completion of the two new plants (Petalite and Spodumene) in June and July respectively," said Mr Mwanza.
Finance manager Mr Amanda Makausi projected that 2024 annual revenue could hit the US$1 billion mark.
"The US$300 million takeover of Bikita minerals by Chinese investor Sinomine has resulted in rapid growth from February 2022 production figures of 3 000 tonnes to 10 000 tonnes per month. We expect production to treble to 30 000 tonnes per month once the new plants are commissioned," he said.
The increase in production, Mr Makausi said, has significantly increased the mine's contribution to the fiscus.
He said Bikita Sinomine is now one of the biggest tax contributors in Masvingo province.
"In 2022 we paid US$50 000 in employment tax and in 2023 we are now contributing US$150 000 monthly. We also pay US$3 million a month in other taxes and mining royalties," he said.
The rapid expansion at Bikita Sinomine has led to the creation of 660 jobs with an additional 1 400 expected to be employed after the completion of the Petalite and Spodumene plants.
Management is offering workers competitive salaries and a monthly golden handshake (production bonus) of 50 percent of net salary.
Source - The Chronicle
