Diversified mining group, Premier African Minerals Plc, says delays in connecting to Zimbabwe’s electricity grid has stalled its key projects in the country.
The RHA tungsten mine and Zulu lithium and tantalum project are Premier’s linchpin projects in the country.
Premier’s CEO George Roach was writing to shareholders to explain the lack of progress at the RHA tungsten mine and Zulu lithium and tantalum projects.
At RHA, Roach says that it needs the Zimbabwe Electricity Supply Authority (Zesa) to connect the mine to the grid after which it expects to commence production underway within a four-month time-span.
“The outlook for RHA has substantially improved,” said the CEO.
The RHA tungsten Mine is located approximately 270km northwest of Bulawayo. And Premier has advanced the RHA project from an exploration project through to a producing tungsten mining operation.
Premier holds a 49 percent interest in RHA, and has so far invested around US$18 million in the acquisition and development of the mine as well as the plant and necessary infrastructure.
In respect of the Zulu project, Premier African said it is still waiting for an Exclusive Prospecting Order or EPO.
Roach said they have since written down its investment in Zulu, however, they will seek to get this revised upwards again once the EPO is granted.
The Zulu lithium and tantalum Project is an advanced stage lithium development project. It covers about 3,5 km² and is located 80km north east of Bulawayo.
Earlier this year, management said the budget for the initial drilling programme (including mobilisation) is approximately US$400 000.
Premier recently issued 212,413,793 new ordinary shares of nil par value at an issue price of 0,145 pence per share to KME as pre-payment for mobilisation and drilling.
Lithium is used in the manufacture of aircraft and in certain high powered batteries. It’s also used in mental health: Lithium carbonate is a common treatment of bipolar disorder, helping to stabilise wild mood swings caused by the illness.
Tantalum is used in the electronics industry for capacitors and high power resistors. It is also used to make alloys to increase strength, ductility and corrosion resistance. The metal is used in dental and surgical instruments and implants, as it causes no immune response.