Can Zimbabwe’s mineral ambitions benefit smaller producers? | News
Zimbabwe Shifts Focus from Raw Mineral Exports to Domestic Processing
Harare, Zimbabwe — Zimbabwe is seeking to transition from a raw mineral supplier to a nation capable of processing and manufacturing its own resources. However, as the government imposes tighter restrictions on the export of unprocessed minerals, smaller mining operators are raising concerns about their future in this evolving landscape.
In a bid to enhance domestic beneficiation, the government has restricted exports of unprocessed key minerals, including lithium. Officials contend that this strategy will allow Zimbabwe to retain a larger share of profits from its mineral wealth, rather than relinquishing the refining and manufacturing benefits to other nations.
This policy shift has reportedly drawn over $1 billion in investments into Zimbabwe’s lithium sector, according to government and industry sources. However, smaller miners are apprehensive that the financial burden of establishing processing facilities, coupled with unreliable electricity supplies and limited access to financing, may hinder their ability to participate in the nation’s industrial growth.
During a media tour of Prospect Lithium Zimbabwe (PLZ) in Goromonzi, held on July 17, Minister of Mines and Mining Development Polite Kambamura noted that the country’s 2022 ban on unbeneficiated lithium ore exports has spurred companies to invest in local processing capabilities. “Behind me is the construction of Africa’s first lithium sulfate plant, and it was built right here in Zimbabwe,” Kambamura stated.
He emphasized that Zimbabwe’s ambitions extend beyond lithium sulfate production, aiming eventually to develop local industries that manufacture lithium batteries and solar panels.
Prospect Lithium Zimbabwe, owned by China’s Zhejiang Huayou Cobalt, reports that its lithium carbonate plant is nearing completion, with approximately 90% of construction finished. Patience Mushore, the company’s public relations officer, noted that Huayou’s investments have generated more than $1.1 billion in foreign exchange for Zimbabwe while enhancing the country’s lithium industry.
Policy Debate and Economic Implications
Supporters of the government’s export restrictions argue that it is essential for Zimbabwe to capture the benefits of its mineral wealth rather than continuing as a raw commodity supplier. Public policy expert Tedious Ncube cited investments at Arcadia Mine and Bikita Minerals as indicative of why the government’s focus on beneficiation is necessary. He stated that domestic processing could lead to job creation, bolster local suppliers, and ensure that Zimbabwe retains a larger share of the income derived from its minerals.
For smaller producers, the primary concern lies not in whether Zimbabwe should process its minerals locally, but in whether they will possess the necessary infrastructure and financial resources to do so. Shelton Lucas, business development director at Naivo Mining, highlighted challenges in accessing affordable processing for projects involving chrome, antimony, and tungsten.
“Our raw chrome often ends up being sold to local Chinese smelters who underpay us; although I can invest in an antimony value-addition plant, I cannot afford to build a similar facility for chrome due to high costs,” Lucas explained. He suggested a toll-smelting system, which would enable smaller miners to access shared processing facilities at reasonable rates while retaining ownership of their resources.
Lucas warned that without such measures, control of processing capacity could become concentrated in the hands of a few larger companies, potentially leading to a predatory market that undermines smaller miners.
Challenges to Domestic Processing
Economists have cautioned that Zimbabwe’s ambitions in mineral processing are hindered by long-standing challenges in the mining and manufacturing sectors. UK-based economist Chenayi Mutambasere noted significant obstacles, including power shortages, high financing costs, inadequate transport infrastructure, and limited access to processing technology. “The ban on raw exports should not merely be a political statement; it needs to be part of a practical industrial strategy,” she emphasized.
Mutambasere called on the government to bolster its policies with reliable electricity, investor incentives, skills development, and clear timelines for implementation. She cautioned that a ban without the necessary supporting systems could drive the mining sector underground, increasing the risk of mineral leakage.
Permanent Secretary in the Ministry of Information, Publicity, and Broadcasting Services Nick Mangwana affirmed that the policy is designed to ensure Zimbabwe benefits more from its finite mineral resources. “This beneficiation policy aims at economic growth and creating a legacy for future generations,” he said, adding that the policy encompasses not only lithium but also other strategic minerals like platinum.
As Zimbabwe navigates its resource-rich landscape, the focus is now on whether its current strategy will foster broader participation in the industry or merely concentrate opportunities among major companies. Lucas reiterated that the aim should be to expand opportunities across the mining sector, advocating for beneficiation as a vehicle for inclusive growth and sustainable development.
