Sinomine seeks $760 million for African lithium, copper projects

China’s Sinomine Resource Group Co. is seeking as much as 5.2 billion yuan ($764 million) to fund projects in Africa, as it steps up investments in raw materials critical to the energy transition.

The company plans to raise capital through a private placement in China, with the proceeds used for its lithium sulfate plant in Zimbabwe, a copper mine in Zambia, a cesium and rubidium project in China’s Jiangxi province, and general cash flow improvements, according to a statement filed with the stock exchange on Tuesday.

Sinomine is among the Chinese companies that have invested heavily in Africa in recent years to secure raw materials for factories back home. The fundraising effort comes amid higher prices for lithium and copper, driven by supply concerns and strong demand expectations.

Zimbabwe recently unveiled export controls on lithium concentrate as part of its push to promote domestic refining of higher-value lithium sulfate. Sinomine’s local unit Bikita Minerals Ltd. has said it obtained approval to resume exports, adding that it will proceed with the planned construction of a $400 million sulfate facility.

The Chinese company said Tuesday it is increasing its total investment in Zambia’s Kitumba copper mine to speed up the project’s ramp-up. According to a separate filing, the mine is now expected to produce an average of about 38,000 tons of copper annually over 15 years.

(By Annie Lee)