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Prospect secures power supply deal for Arcadia lithium project in Zimbabwe

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Prospect secures power supply deal for Arcadia lithium project in Zimbabwe

Prospect Resources Ltd. said Dec. 16 that it inked a secure power supply agreement with Zimbabwe Electricity Transmission and Distribution Co. for the Arcadia lithium project.

The deal, which will have an initial term of three years, will commence Jan. 1, 2020, and will be automatically renewed for another three years.

The tariffs are approved by the Zimbabwe Energy Regulatory Authority, while ZEDTC is required to provide advanced notice in the event of a major system fault, maintenance or major power supply shortfalls that may temporarily interrupt Arcadia's power supply.

Arcadia's primary source of power is the existing Lake Kariba hydroelectric power station, whose main power distribution lines run adjacent to the mine, some 15 kilometers away via the Atlanta substation.

"The development of the Arcadia lithium mine must be underpinned by secure, long-term energy supply, and the SPSA is the first stage in this process. Secondary sources of power, including a possible solar farm, will now be a focus for the team," Prospect's Managing Director Sam Hosack said in a statement.