‘Local lithium beneficiation has potential to boost economy’

ANALYSTS have implored the Government to create a conducive environment to encourage lithium beneficiation locally as the resource continues to gain momentum on the global front.

Lithium has become the world’s most sought-after mineral and Zimbabwe is endowed with this resource, a development which has seen increased investor traffic into the country lately.

However, lack of technological advancements and a delicate economic base are some of the major stumbling blocks slowing the country’s ability to process raw minerals, leading to the loss of billions of potential revenues.

Efforts to add value to the resource have been topical and in December last year the Government banned the export of unprocessed lithium to curb smuggling through the country’s porous borders to neighbouring nations, including South Africa.

Adding the impetus to the notion of value addition, Finance and Economic Development Minister, Professor Mthuli Ncube, earlier this year dangled US$20 million for a partnership with investors willing to venture into lithium battery manufacturing in Zimbabwe.

As such, Prospect Lithium Zimbabwe (PLZ) an arm of Chinese company, Zhejiang Huayou Cobalt, in July this year commissioned a US$300 million lithium processing plant.

The plant has a capacity to process 4, 5 million metric tonnes of hard rock lithium into concentrate for export per year, which will add to lithium supplies on the global market at a time when the resource demand sustains.

The establishment of the processing plant at PLZ is in tandem with the Government’s stance to position the country as a lithium hub. The company aims to process up to 450 000 tonnes of concentrate annually, for further processing into battery-grade lithium outside of the country.

All things being equal, the nation will benefit circa US$40 million per year in revenue generation from PLZ endeavours.

Beneficiation is part of Zimbabwe’s economy’s diversification and setting up lithium processing hubs, particularly lithium battery manufacturing companies in Zimbabwe will immensely benefit the country.

According to the local think tank Zimbabwe Coalition on Debt and Development (ZIMCODD), Africa has been on the receiving end of trade injustice which incapacitates its ability to build industry as it continues to export raw minerals to the Global West.

“Lithium will, in the coming years, become one of the most in-demand minerals because of its importance in clean energy and information technology. The country, through government policy and practice, needs to create a conducive environment that will encourage and sustain investment.

“Zimbabwe needs to embark on projects that will centralise the processing of raw minerals so it can produce better products that will create jobs and boost local economies,” said ZimCodd in its weekly communique.

Economist and trade expert Doubt Chiorora, said Zimbabwe stands to benefit immensely from the ongoing lithium rush, but needs to spruce up its regulatory framework in order to entice those investors willing to value-add the resource locally.

“With proper investment and support, Zimbabwe has the potential to become a major player in the lithium industry.

“Lithium beneficiation in Zimbabwe may, however, face some challenges including limited infrastructure and lack of technical expertise, the government should intensify on making favourable regulatory and environmental considerations,” he said.

Zimbabwe is targeting to earn at least US$500 million from lithium mining activities as the country moves closer to the set timeline to attain a US$12 billion mining industry.

The country’s revenue from lithium exports is expected to surge as the commodity’s price continues on an upward trend in the global market. Zimbabwe is estimated to hold Africa’s largest lithium resources and the fifth largest globally and is rapidly emerging as an important player within the lithium supply chain.-ebusinesweekly