‘US$500m lithium contribution achievable’

Business Reporter

THE US$500 million lithium contribution to the US$12 billion mining economy that the Government is targeting by the end of this year is still achievable despite the existing ban on the export of unprocessed lithium, a Cabinet minister has said.

Of late, the Government has promulgated a number of policies, including the Lithium Ore Policy, to foster local beneficiation of minerals.

In 2019, the Government launched the US$12 billion mining sector strategic roadmap, which is expected to be realised by year-end.

Gold was envisaged to contribute US$4 billion, platinum (US$3 billion), diamonds (US$1 billion), while chrome, ferro-chrome and carbon steel are expected to generate US$1 billion, and coal US$1 billion.

Other minerals will generate US$1,5 billion.

Speaking at the commissioning of Prospect Lithium Zimbabwe’s US$300 million processing plant by President Mnangagwa in Goromonzi last week, Mines and Mining Development Minister Winston Chitando reiterated that the mining sector would play a critical role in the country’s quest to become an upper middle-income economy by 2030.

“Zimbabwe’s mining industry is on course to attain the Government’s target of a US$12 billion mining economy by 2023, with lithium producers expected to reach their US$500 million contribution despite export bans that were effected in 2022 and 2023,” he said.

The Government’s drive to enhance mineral exploration, open new mines, reopen closed mines, expand ongoing projects, stop mineral leakages, increase capacity utilisation and value addition, he added, have started to bear fruit in the lithium sub-sector, where a number of major projects are expected to come online this year.

The Zimbabwe Investment and Development Agency (ZIDA) has issued 42 lithium-related licences in the January to March period this year. This is in addition to 31 licences issued in 2022.

“Today, we are launching this state-of-the-art lithium processing plant set up by one of the major producers in the lithium sub-sector, Prospect Lithium Zimbabwe.

“This project is set to revolutionise the lithium mineral processing sector by unlocking the huge potentials in our mineral resources.

“This plant will be able to process spodumene, petalite and tantalum ores from low grades to higher ones with great efficiency and a large output,” he said.

“We, as Government, continue to be committed to working with and serving our partners in the private sector so as to promote responsible and sustainable practices in the mining and mineral processing industry.

“We prioritise the safety of mine workers and management of the environment through activities that include reclamation, restoration and rehabilitation of mining sites.”

Minister Chitando said the Government remains committed to driving the mining industry’s development and growth by supporting socially responsible and innovative mining activities.

“Our priorities as a nation include enhancing technology, improving training capacity in the mining sector and development of downstream industries for production of value-added products from minerals so as to unlock more value for the benefit of every Zimbabwean.”

The Government recently launched the Lithium Ore Policy to provide guidelines on lithium mining and processing. Prospect Lithium Zimbabwe’s plant has the capacity to process 4,5 million tonnes of lithium concentrate.

A committee — made up of officials from the Ministry of Mines and Mining Development; Ministry of Home Affairs and Cultural Heritage; and Ministry of Higher and Tertiary Education, Innovation, Science and Technology Development — has since been set up to oversee issues related to the mining and export of lithium.

President Mnangagwa said focus on beneficiation and value addition could help drive employment creation, increase foreign currency revenue and enhance the country’s domestic productive capacity.

“Our aim as a nation is to achieve national goals that include transformation of the economy through value addition and beneficiation,” he said.

“Prospect Lithium Zimbabwe’s initiative, therefore, is an important step towards achieving these goals and reflects our determination to take Zimbabwe to greater heights.”