Govt Takes Measured Approach To Localise Lithium Processing

By Ross Moyo

Zimbabwe’s Second Republic government will now take a measured approach in its quest to localise Lithium processing according to Mines and Mining Development Minister Winston Chitando and his Deputy, Polite Kambamura.

In an exclusive interview with Mines and Mining Development Minister Winston Chitando, the Mines boss hinted on his second return to head the Mines Portfolio the possibility of the Southern African country, “Softening its stance on lithium production following demands by the Second Republic which had given miners 4 months to submit refining plans, in the first quarter of last year since now Miners are struggling with low prices, tough operating conditions, and some Companies have been scaling down production, cutting Lithium related jobs.”

“We are now considering them on a case by case basis and also considering the level of investments already put in the country,” Chitando’s Deputy Kambamura also complemented his boss.

Sinomine, Zhejiang Huayou Cobalt, Chengxin Lithium Group, Yahua Group and Canmax Technologies are amongst Chinese companies which have spent more than $1 billion over the past three years to acquire and develop lithium projects in Zimbabwe.

“Some commenced mining operations five months before the deadline, so we are considering where the project is,” added Kambamura.

$500 million building a lithium sulphate plant at Bikita within the next five years, is part of Sinomine’s plans.

Feasibility studies for a lithium sulphate plant at Huayou’s Arcadia mine are currently being conducted.

The Deputy Minister also said the government was open to dialogue with lithium miners over their struggles.

“We understand the prices are low but they are beginning to firm up. The fact that there are upcoming projects means the environment is favourable,” said Chitando’s Deputy.

Apparently the country is no longer hardening its requirements for lithium miners to process the mineral locally, as the Deputy Minister revealed with the lithium industry fighting to survive last year’s 2023 price slump.

Zimbabwe had last year given producers up to March 2024 to submit plans of how they would produce battery-grade lithium and the southern African country Is Africa’s top producing lithium nation.

Lithium prices, have fallen more than 80% in the past year largely due to overproduction from China and a drop in demand for electric vehicles.

Chinese battery giant CATL suspended production at certain mines forced by the price slump of the mineral used to produce battery technologies. Even the world’s top lithium miner, Albemarle performed a second round of cost cuts earlier this year and laid off workers.

Sinomine Resource Group’s Bikita Minerals, and other Lithium Miners in Zimbabwe have been forced to cut production and lay off workers as the impact of weak prices has been compounded by the country’s currency volatility, policy inconsistencies and poor infrastructure which the Mines and Mining Development Ministry is addressing with other government stakeholders which include other interministerial committees.