New mining law to be strict on lithium
beneficiation

PARLIAMENTARY Committee on Mines and Mining Development says the upcoming
Mines and Minerals law should be rigid on lithium beneficiation to ensure maximum
returns for the country from the commodity.

Zimbabwe is endowed with diverse mineral resources but lithium is the topical at the
moment, a position that has triggered amplified investor interest in the resource as the
world evolves towards adoption of renewable energy and electric cars to curb emissions.

Statistics show that Zimbabwe produced 1,200 tonnes of lithium in 2021, making it the
sixth-largest miner globally behind Brazil (1 900 tonnes), Argentina (6 200 tonnes),
China (14,000 tonnes), Chile (26 000 tonnes) and Australia (55 000 tonnes).

However, being one of the top producers of the commodity does not automatic translate
to maximum financial returns, given that lucrative price is earned from a beneficiated
commodity.

Locals’, particularly artisanal miners are selling the commodity for a song compared to
benefits that can be accrued from exporting concentrates or retailing lithium products
like batteries.

On December 20, 2022, the government announced that lithium-bearing ores could only
be exported on the basis of a written permission from the Minister of Mines and Mining
Development.

The provision allowed free movement of rocks meant for assay abroad or lithium ore
whose market value would have been determined on the basis of reference to a reputable
metals exchange.

Ban on raw lithium exports is meant to encourage investment in local processing
facilities.

To that effect, Finance and Economic Development Minister, Professor Mthuli Ncube, in
February indicated that Government is ready to put forward US$20 million to partner
investors willing to invest in a lithium battery manufacturing project in Zimbabwe.

Speaking at a consultative meeting, Parliamentary Committee on Mines and Mining
Development chairperson, Edmond Mkaratigwa, indicated that Zimbabwe’s should aim
to accrue higher returns from the commodity given the momentum of lithium all-round
the world.

He said the Mines and Minerals Bill which is currently being debated through
consultative meetings, seeks to repeal the existing mining law to adapt to over a decade
of new national and international changes in mining as well as challenges affecting the
sector and its linkages throughout the value chain.

“I appreciate that lithium has been identified as a strategic mineral, and as you all know,
climate change is upon us and the world is fast moving towards cleaner energy sources
whose technologies include use of electric cars powered by lithium batteries.

“Zimbabwe is in the world’s top ten in terms of its lithium resource endowment so we
definitely have to guard jealously this God given precious opportunity presented in this
resource.

Effectively, it becomes imperative that we put our shoulder to the wheel and make a law
that will have a positive impact on the current generation as well as our posterity, we
should strive that the end process ends here so that Zimbabwe exports finished products
like batteries which have a better value,” said Mr Mkaratigwa.

He said the law should ensure that the totality of mining revenue find way to the fiscus
further indicating that the state must guarantee that local communities benefit from the
resources in their regions.

Mining industry expert, Mr Godfrey Manja, indicated that although a law was put in place
to curb random extraction and trading of lithium, security should be aided to limit the
activities still being conducted by unscrupulous buyers and dealers.

Illegal lithium mining activities are still going unnoticed in some areas across the
country, we still have artisanal miners being involved in running battles with the law
enforcement agencies.

“We have areas like Goromonzi where artisanal miners are still conducting illegal
lithium extraction, the issue is who are they selling to and where is it going next,” said
Mr Manja.

Through Statutory Instrument 213 of 2022 (Base Minerals Export Control for
unbeneficiated Lithium Bearing Ores) people that are found violating the law face a fine
of twice the value of the mineral they had sought to export illegally (smuggle), or face
imprisonment for up to two years.-The Herald