Vusumuzi Dube
Judith Phiri, Business Reporter
Zimbabwe has realised a total of US$209 million from lithium exports, owing to a surge in the demand for the mineral, which is key to the attainment of the US$12 billion mining industry.
Under the US$12 billion mining economy by the end of this year, the lithium sector is expected to contribute US$500 million.
As a base metal, lithium is used in the manufacturing of batteries and its demand has arisen sharply due to the global demand in electric vehicles, particularly in developed countries that are forging ahead with plans to phase out fossil fuels like petrol and diesel in the coming years.
Officially opening the Lithium and Battery Mining Conference at the ongoing 26th edition of the mining, engineering and transport expo (Mine Entra), the Minister of Mines and Mining Development Soda Zhemu said the exports of lithium have increased significantly.
“The exports of lithium have increased significantly from 2018 up to 2022. The respective exports revenue generated from the export of lithium during these years grew from US$1.8 million in 2018 to US$70 Million in 2022. By September, 2023 a total of US$209 million had been realised from lithium exports which is a very impressive improvement,” he said.
“The rise in demand for lithium and battery minerals has presented a number of opportunities for Zimbabwe as a nation. These opportunities stem from the fact that our nation is blessed with an abundance of the lithium resource making it one of the top producers in Africa and the world.”
He said materials making up batteries were expected to have significant market expansion in the near future as their importance for the global energy transition increases.
The Minister said the current major exporters in the lithium sector have been Bikita Minerals from Masvingo Province but the surge in demand for the mineral has seen new major producers, Prospect Lithium Zimbabwe and Sabi Star.
“Other major producers are expected to start operations in 2024 and these will contribute to the expansion of the sector. Due to the demand, new investors, both local and foreign, have entered the sector to mine, process and export lithium and battery minerals from Zimbabwe,” he said.
“Let me take this opportunity to announce that lithium and battery minerals have the potential of powering Zimbabwe’s future through exploitation of all the available opportunities of the sector. Numerous opportunities for both local Zimbabweans and foreign investors have thus arisen in the recent few years.”
Minister Zhemu said the successful exploration of mineral resources in the county has led to long-term investments by foreign companies as exemplified by the recent commissioning of the Prospect Lithium Zimbabwe and Sabi Starr Lithium mines and processing plants.
He said most of these foreign companies have injected a total of above US$600 million into the various projects.
The Minister said: “The Government through the Ministry of Mines and Mining Development has worked on policies to regulate mining of lithium and other battery minerals. Firstly, a ban on export of raw base mineral ores that include lithium and other base minerals, was introduced to stop their rampant exportation in raw form. The move by Government was aimed at halting these exports to ensure more value is realised from the vast lithium and battery mineral reserves discovered so far in the country.”
In a speech read on behalf of the Ministry’s Permanent Secretary Mr Pfungwa Kunaka by chief director Dr Mercy Manyuchi, he said lithium and battery minerals such as tantalum, graphite, nickel, manganese and tin are expected to contribute hugely to the mining sector’s expansion.
Mr Kunaka said the mining industry in Zimbabwe is anticipated to make a significant contribution to the country’s attainment of Vision 2030’s goal of becoming an upper middle income economy by 2030.
Online Reporter