• Prospect Resources will sell its 90% stake in the Step Aside Lithium project in Zimbabwe.

• The sale proceeds will fund development of its Mumbezhi copper project in Zambia.

• Weak lithium prices contrast with strong copper demand and rising market prices.

Australian miner Prospect Resources announced on November 5 the signing of an agreement to sell its 90% stake in the Step Aside Lithium project in Zimbabwe. The move follows the company’s suspension of exploration activities at its Omaruru project in Namibia in October, confirming its withdrawal from lithium and renewed focus on copper.

$PSC has signed a Share Sale & Purchase Agreement with Fatima Resources for the sale of its Step Aside Lithium Project in Zimbabwe, for up to US$2.2m. Proceeds will fund exploration at the Mumbezhi Copper Project in Zambia: https://t.co/9jgbOhfvqp@SamHosack $PSC.AX pic.twitter.com/2z8hhjfEL1

— Prospect Resources Ltd (@ProspectResLtd) November 5, 2025

Prospect plans to use the proceeds from the sale to support growth at its main copper asset in Zambia. Located in the country’s northwest, the Mumbezhi project hosts an estimated 107 million tons of mineral resources grading 0.5% copper, according to a March 2025 resource estimate. Zimbabwean firm Fatima Resources is expected to pay up to $2.2 million to acquire Prospect’s subsidiary holding the Step Aside asset.

“We remain focused on achieving further resource growth and expanding the regional footprint of the Mumbezhi project,” said Prospect Resources CEO Sam Hosack, noting that phase two drilling is nearly complete ahead of an updated resource estimate later this year.

Diverging market trends for copper and lithium

The company’s shift toward copper comes as the lithium market faces a prolonged downturn due to oversupply. Price reporting agency Fastmarkets attributes the slump to high spodumene output from Australia combined with a surge in China’s production of lepidolite and brine-based lithium, leading to large inventories across the value chain. As a result, battery-grade lithium carbonate prices fell to 72,500–73,000 yuan ($10,163–$10,233) per ton on October 10, down sharply from 590,000–605,000 yuan in November 2022.

While supply gaps for some critical minerals are narrowing, key risks remain

Investment momentum in critical minerals has weakened recently & export restrictions are on the rise

Without further action, copper could see a 30% supply shortfall by 2035 ? https://t.co/Ii98eOtnWA pic.twitter.com/w7ej8e5fG6

— International Energy Agency (@IEA) October 13, 2025

Copper, by contrast, is experiencing supply pressure, especially in 2025, due to operational challenges at several mines in the Democratic Republic of Congo and Indonesia. In September, Goldman Sachs projected a 50,500-ton global copper deficit for the year.

Over the longer term, the International Energy Agency forecasts a 30% global copper shortfall by 2035. This outlook has supported copper prices, with three-month futures surpassing $11,000 per ton on the London Metal Exchange in October. After rising 24% since the start of 2025, Citigroup expects copper to reach $12,000 per ton in the first half of 2026.

These market conditions strengthen Prospect Resources’ copper-focused strategy, though the company has not detailed its long-term plans for Mumbezhi. Major shareholder First Quantum Minerals, a Canadian copper producer, is reportedly considering integrating the project into its Zambian operations, while a potential sale remains on the table.

Between 2016 and 2022, Prospect developed the Arcadia lithium project in Zimbabwe up to feasibility stage before selling it for about $400 million to China’s Zhejiang Huayou Cobalt.