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China Star Lithium Increases Zim Value & Prospects Simultaneously Displacing 41 Buhera Families

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By Ross Moyo

China’s Sabi Star Lithium Mine has increased Zimbabwe’s international standing positively including the value of the mineral rich nation’s prospects whilst simultaneously on the other hand displacing 41 Buhera Families.This was revealed by a social scientist who conducts research on social aspects of the transition to renewable energy and of mining, his latest research confirming that indeed, ”41 families in Buhera were displaced from their homes to make way for Zimbabwe’s third largest lithium mine, owned by China’s Sabi Star mining company.”

Buhera which is in a remote rural area in south-eastern Zimbabwe, is one of several places in the country where lithium is currently being mined. The Chinese company (Max Mind Investments) which runs the Sabi Star mine was granted over 55 mining claims in the area in September 2021 and is expected to extract lithium deposits in the area for over 20 years.

In November 2021, Shengxin Lithium Energy acquired a 51 percent stake in Max Mind and its subsidiary Zimbabwe Sun Company, and now owns the mining warrants for a total of 40 rare metal blocks located in the Sabi Star lithium tantalum mine project in Zimbabwe, with a total area of 2,637 hectares.

Australian investors, besides Chinese Investors, still run the Step Aside Lithium Project. The Second Republic, on the other hand, owns 65 percent of shares of the Kuvimba Mining House that is exploring lithium at Sandawana Mine, while 35 percent is owned by private investors.

According to Official statistics from Zimbabwe Investment and Development Agency (ZIDA), the “mining sector attracted 18 percent of the total projected potential business valued at US$622,18 million in the first quarter of 2024.”

ZIDA said, “during the period under review, three new lithium mines with an average of 150 hectares were registered in March alone.”

The Southern African nation has lately become a centrepiece in the global mining matrix becoming a hive of activity in the lithium extraction segment, dominated by Chinese investors.

Zimbabwe has the richest deposits of lithium, which is a key component in the production of batteries for electric vehicles and high power storage sources for other electronic devices.

Lithium global demand is expected to rise in the coming years, with more investors looking to capitalise on the country’s mineral wealth, hence Government has actively promoted foreign investment in the mining sector, offering incentives such as tax breaks and streamlined regulations to attract investors, as espoused by President Mnangagwa’s “Zimbabwe is Open for Business” mantra.

Mnangagwa’s mantra has made the country an attractive destination for lithium mining companies looking to expand their operations.

Nevertheless simultaneously on the other hand, it was assessed this new economic boom brought by lithium particularly Sabi Star lithium mine displaced families who had been given, ”no opportunity to exercise free, prior and informed consent about whether to leave their land, how they had agreed to leave, and what happened to them afterwards,” according to the social scientist.

The Buhera displacements after interactions with locals and non governmental organisations NGOs exposed the negative social and environmental impacts of lithium extraction.

A row of houses crowded together on dusty red sand was the relocation area where Buhera villagers were moved to. The community said that the mining company, sleeping in the same bed with government technocrats, manipulated and coerced them into accepting forced resettlements by promising new houses and jobs on the mine.

Villagers were also told they stood to lose their land if they stayed hence the relocated families accepted a promise of new houses of a certain size but received smaller homes that developed cracks four months after they moved in. The loccals also said that the Mukwasi dam which they had depended on for irrigation and livestock drinking water was taken over by the mining company.

In the end, the transition to renewable energy and forced displacement and resettlement of communities was not a success as the Zimbabwean government urgently needs to set up responsible resettlement policies and safeguards for communities whose land is rich in minerals and who will be asked to relocate.

The Sabi Star lithium mine in Buhera, Zimbabwe has fallen short for the Buhera community , and more can be and should be done to rectify this considering Lithium is an essential component of electric vehicle batteries, which are becoming more important as the world moves to a low-carbon energy future. Large deposits of lithium exist in Argentina, Chile, Brazil, Bolivia, Canada, the US, Australia, Portugal, Namibia, Zimbabwe and Ghana. Zimbabwe is the largest producer of lithium in Africa, and the ninth largest in the world.

 

Ross Moyo

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