Premier African Minerals, a UK-listed lithium mining company, has successfully reached a settlement with Zimbabwean contractor JG Goddard Contracting (JRG) over a long-standing US$2.4 million debt related to work done at its Zulu Lithium and Tantalum Project in western Zimbabwe.
In a statement released this week, Premier announced it had agreed to pay US$400,000 by the end of January 2026, with additional payments scheduled to clear the remaining balance by November 2026.
Premier has struggled to settle for several months.
Late last year, JRG secured a court order to seize movable assets from Premier’s mine, escalating the situation and prompting the settlement.
The agreement now paves the way for Premier to resolve the debt issue, allowing it to focus on advancing its operations without the threat of asset seizure.
“This settlement marks a significant turning point. We’re pleased to have reached an agreement with JRG, which provides much-needed clarity and removes a substantial financial burden. This clears the way for Premier to push forward with its key projects at Zulu, focusing on funding and operational growth,” Premier Chairman, Godfrey Manhambara said.
The debt crisis is just one of several challenges Premier has faced since launching its lithium concentrate plant three years ago. Technical and financial hurdles have delayed progress, including the company’s failure to meet its March 2023 shipment deadline to Chinese partner Canmax Technologies.
This led to Premier declaring force majeure, which Canmax later contested, resulting in a complex renegotiation of a $35 million loan to the company for the plant’s construction.
Despite these setbacks, the recent settlement with JRG signals a more stable financial footing for Premier as it looks to recover and accelerate the development of Zimbabwe’s promising lithium sector.
