Story by Stanley James, Business Reporter
ZIMBABWE’s decision to ban the export of all unprocessed minerals, including lithium concentrate, is already influencing global commodity markets, with international lithium prices rising by more than 20 percent following the announcement.
The move forms part of a broader value addition and beneficiation strategy designed to maximise returns from the country’s mineral wealth, as mining currently accounts for over 70 percent of Zimbabwe’s annual foreign currency receipts, a figure authorities believe could rise significantly if more minerals are processed domestically before export.
President of the Chamber of Mines of Zimbabwe, Jonathan Musekiwa, says the sector is adjusting to the new regulatory framework.
“The international prices of the minerals continue to be on a bull run especially the lithium market prices that have surged by over 20 percent this means that as the mining sector we need to embrace this value addition strategy and see to it that going forward this translate into increased sales, consultations are on course and this is the time for the industry to focus on more machinery and equipment investments or projects.”
Responding to concerns over the mining sector’s ability to adapt to the new regulations at a post cabinet media briefing this Tuesday, Mines and Mining Development Minister Dr Polite Kambamura revealed the decision took into consideration the capacity of the mining sector to invest in machinery and equipment.
“For some years we have been holding discussions with the mining sector to ensure that emphasis is on value addition and beneficiation as sector remember several Africa countries have also been implementing this plan and it is working so for us as Zimbabwe the key thrust is on what we can do to do our best remember immediately after the announcement of the ban, lithium prices within the international markets also increased so it means this is a game changer that will position Zimbabwe as a hub of manufactured mineral exports leading to increased earnings.”
Zimbabwe holds some of the largest lithium reserves in Africa, a mineral central to electric vehicle battery production and renewable energy technologies. By restricting raw exports, the Government aims to stimulate local processing capacity, encourage capital investment and strengthen industrial linkages.
