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Oliver Kazunga, Senior Business Reporter
ZIMBABWE’S lithium concentrate output grew by 16 percent to 132 196 tonnes in the second quarter of this year, driven by an increase in producers.
According to the Treasury Quarterly Bulletin for the period April to June, 2024, the lithium mining sector increased output after new producers came online.
“Lithium concentrate output stood at 132 196 tonnes during the second quarter of 2024, recording a 16 percent increase relative to the first quarter of 2024.
“The increase is attributed to production from some of the mining houses, which were not producing during the first quarter of 2024,” it said.
Zimbabwe has seven lithium mining companies, including Sabi Star Lithium Mine, Prospect Lithium Zimbabwe, Kamativi Lithium Mining Company and Bikita Minerals, which are operational.
The other three, among them the Zulu lithium project, are at different stages of development
Lithium output during the quarter under review, according to the Treasury bulletin, recorded a 3,3 percent increase relative to the output produced during the same period last year.
In 2023, the country produced 300 000 tonnes of lithium concentrate.
The mining industry is one of Zimbabwe’s major economic mainstays, accounting for over 75 percent of the national export earnings, underpinned by gold, platinum and diamond.
Lithium, A green energy mineral, is considered the mineral of the future due to its use in the production of electronic vehicle batteries.
However, the global metal prices except for gold, have in recent years remained subdued, impacting adversely on production the world over.
Lithium prices have plummeted on the global markets from US$80 000 per tonne in 2022 to under US$20 000 presently.
This has largely been attributable to the glut of lithium and the rising interest rates that have affected demand for electric vehicles.
“The mining sector recorded mixed performances during the second quarter of 2024, with gold, Platinum Group Metals (PGMs), diamond and nickel recording decreased mineral output, while lithium and chrome recorded increased output.
“The decrease in output of several minerals is attributed to intermittent power outages and declining international commodity prices for most of the minerals, save for gold prices,” reads part of the Treasury bulletin.
Gold production stood at 8,2 tonnes during the second quarter this year, a 24 percent increase compared to the 2024 first quarter performance.
The significant increase in deliveries relative to the first quarter of 2024 is attributed to the removal of value-added tax on gold sales.
The diamond sector, the Treasury bulletin says, recorded a 16,9 percent decline in output during the second quarter of 2024 compared to the first quarter.
“Similarly, this output is a 2,2 percent decline relative to the same period in 2023. The output was compromised by intermittent power outages.”
The PGMs sector recorded a 11,3 percent decrease during the second quarter relative to the first quarter of 2024.
“The decrease in PGMs emanated from international commodity prices of PGMs which are at their record lows.
“Relative to the same period in 2023, PGMs output declined by 6,3 percent during the second quarter of 2024,” said the Treasury bulletin.
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