dyton mupawaenda
Lovemore Chikova-Development Dialogue
It all started with a ban of the export of raw lithium in December 2022, and now, the results are there for all to reflect on the astuteness of the developmental programmes being implemented by the Second Republic.
When President Mnangagwa initiated the ban on the export of raw lithium, some, especially those with a penchant of opposing for the sake of it, attempted to discredit the move.
What they did not know was that this was a well thought out decision meant to move forward the development of the country.
Now, nearly a year after the export ban, Zimbabwe boosts of four lithium processing plants that are already adding value to the important mineral.
These are at Bikita Minerals in Bikita, Prospect Lithium Zimbabwe in Goromonzi, Sabi Star Lithium Mine in Buhera and Zulu Lithium Mine in Fort Rixon near Bulawayo.
All these factories are processing raw lithium into spodumene concentrate, a product that can be used in the manufacture of various items.
In an explainer, South African communication specialist Lie Oertel reveals that spodumene came from a Greek word “spodumenos,” meaning “burnt to ashes.”
The mineral was given the name because it becomes white or ash-coloured when exposed to air and high temperatures.
Lithium extracted from spodumene is processed to create lithium carbonate or lithium hydroxide, both of which are critical raw components in lithium-ion batteries.
“We can see the economic importance of this mineral because of its lithium component,” said Oertel. “As demand for batteries surges, manufacturers require more of it to meet customers’ needs.
“Spodumene is a critical feedstock in producing crucial compounds that let us incorporate electric vehicles, renewable energy storage systems, and portable electronic devices into our lives.”
This means that the battery industry becomes an important consumer of lithium, especially with the advent of electric vehicles which have made the demand for lithium batteries increase.
Spodumene is important in the manufacture of ceramics, enamel and glass, it can be used in some industrial processes because of its capacity to tolerate extreme temperatures and it can be used as a shielding material in some applications, such as nuclear facilities and medical equipment, Oertel reveals.
All this makes Zimbabwe on the right path to modernisation and industrialisation, as envisaged by President Mnangagwa.
This also means Vision 2030 of becoming an upper-middle income economy can easily be achieved in the presence of such ingenuity in enabling industrialisation processes.
After the setting up of these lithium processing plants, the next stage should the setting up of industries that can produce the end products from spodumene.
Incentives can be put in place to attract investors in this sector who can bring capital to start the production of finished products from lithium.
Companies that are producing spodumene at the moment are focusing on the foreign market where there are those already in the business of processing finished products.
But exporting the spodumene comes at a cost in terms of transportation and other accompanying costs.
The best is for the companies that consume spodumene to set up factories at source, thereby making Zimbabwe an important part of the manufacturing of lithium products.
Very soon, the country will be having its own industries manufacturing lithium-ion batteries and all the other products.
Now, that takes a genius in planning development as demonstrated by the little step of banning the exporting of raw lithium.
After all, this was a well-focused and strategic move meant to thrust Zimbabwe into the mainstream production process for lithium and the finished products.
Many are now beginning to appreciate Statutory Instrument 213 of 2022 titled the Base Minerals Export Control (Lithium Bearing Ores and Unbeneficiated Lithium) Order, 2022.
Apart from implementing the general policy of the Second Republic that mineral exports should be refined or beneficiated within Zimbabwe to the standard levels required for international trade, there move has created jobs for locals.
As the value chain progresses, more jobs will be created in the manufacturing of various products.
Lithium has become the mineral of the moment in Zimbabwe and the attention that everyone, including foreigners, have been diverting to the mineral indicates the important role it can play in the country’s development matrix.
The ban on exports of raw lithium was indeed a correction of the colonial practices, whereby minerals were being exploited and exported to western capitals in raw form, leaving developing countries like Zimbabwe gaining very little from their natural resources.
This exploitation of mineral resources with little benefit to the host countries accounts for a fair share of why countries with abundant minerals remain poor.
This state of affairs led some development analysts coining what they termed the dependency theory as they attempted to explain the skewed and exploitative nature pursued by developed countries.
Those who coined this theory explained development in terms of how developed countries have been dependent on developing countries for natural resources, which they exploit in most cases for free and ship to industries in their backyards.
These industries’ manufacturing processes are powered by the raw materials obtained from developing countries and when they produce finished products, they send them back to developing countries at huge profits.
The line being pushed by the Second Republic in the lithium sector is a direct challenge to the dependency theory, especially as it aims to ensure that resources are exploited and produced into finished products locally.
It will now be the turn of the developed countries to come begging for the finished products like lithium-ion batteries from Zimbabwe, with the country in total control on determining the prices.
What the accrues to Zimbabwe include creation of employment opportunities, the reduction of trade deficits, contribution to the Gross Domestic Product and an increase in the country’s Gross National Product.
All these are ingredients driving the country’s quest to attain an upper-middle income economy by 2030.
Zimbabwe, being the country with the largest lithium deposits in Africa, cannot fail in this area, especially with its appropriate policies insisting of beneficiation to ensure it gets more value from the mineral.
President Mnangagwa has presided over the commissioning of some of the lithium processing plants in various parts of the country.
At Bikita Minerals he said:
“I commend Sinomine Resource Group for taking heed of my Government’s call for beneficiation and value addition of lithium ores by investing over US$300 million into the various stages of the project. This has contributed to the realisation of our target of attaining a US$12 billion mining economy by year end.
“The milestone represents part of my Government’s efforts to consolidate our position as a regional and global hub for lithium mining and related industries. The increased beneficiation of our abundant natural resource endowment does not only relate to players in the lithium sector but across the entire mineral value chain.
“I challenge all mining houses to adhere to agreed roadmaps to enable the establishment of more precious metal refineries and the local manufacturing of finished goods from our vast minerals. This has become urgent, given the need to de-risk our mining sector from global shocks and mineral price volatility.”
At Prospect Lithium Mine in Goromonzi he said:
“This investment will undoubtedly contribute to the mining sector targets set out in the National Development Strategy as well as our country’s overall national Vision 2030. Further, as a company, you are answering my Government’s call to realise economic growth, value addition, and beneficiation as well as diversity through increased production and productivity in the mining sector.
“In keeping with the Lithium Ore Policy, the Spodumene, Petalite and Tantalum Processing Plant being commissioned today is an important building block for the ongoing modernisation and industrialisation agenda. The investment will further promote the domestication of value addition and beneficiation of lithium ore.”
“I want to particularly congratulate Prospect Lithium Zimbabwe for completing the construction of the plant in record time. This resonates with the rapid results culture of my Government and speaks volumes about the work ethic of this entity. Makorokoto. Amhlophe.”
At Sabi Star Lithium Mine, he said:
“Our presence here today reflects the unflinching focus by my Government on accelerating our country’s economic prosperity through mineral value addition and beneficiation, following the resounding Zanu PF victory in the harmonised general elections.
“The growing global demand for lithium and the presence of our own processing facilities reduces exports of unprocessed minerals and positions Zimbabwe as a key player in the lithium markets. Over and above enhancing profitability and foreign currency generation, this development will further have positive spill-over effects to surrounding communities and the nation as a whole.”
Lovemore Chikova is the Assistant Editor at The Herald with an interest in research on developmental issues. He holds a Master of Social Science in Development Studies
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