2023-11-30 16:35:16
Zimbabwe has given lithium miners until March 2024 to submit plans for local production of battery-grade lithium in a bid to benefit from growing demand for the clean energy mineral, the finance minister said on Thursday Mthuli Ncube.
Africa’s top lithium producer last year banned the export of lithium ore and imposed a 5% export tax on concentrates.
Lithium, used in electric vehicle batteries and to store renewable energy, has become Zimbabwe’s third largest mineral exporter, following platinum group metals (PGMs) and gold, bringing in $209 million during the first nine months of 2023.
While presenting the 2024 national budget, Mr Ncube said government did not view the current production of concentrates by the country’s miners as beneficiation, a process in which raw minerals are upgraded to add value.
“Any lithium valorization process that does not result in the production of lithium carbonate is not considered valorization. Lithium producing companies must submit their enrichment plans no later than March 31, 2024,” a Mr. Ncube said.
He added that no new licenses would be granted to potential lithium miners without approved beneficiation plans.
Zimbabwe’s hard rock lithium reserves, among the largest in the world, have attracted more than $1 billion in investment from Chinese miners including Zhejiang Huayou Cobalt, Sinomine Resource Group, Chengxin Lithium Group , Yahua Group and Canmax Technologies.
Sinomine, which recently commissioned a $300 million spodumene concentrator at its Bikita mine in southern Zimbabwe, said on Thursday it had started feasibility studies on lithium production battery quality in the country.
His counterpart Huayou, who bought the Arcadia mine just outside Harare in 2022 and built a concentrator that began producing early this year, said he would only explore local lithium sulfate production “until when the construction conditions and economic conditions are met.
Huayou has previously said Zimbabwe lacks reliable renewable energy, natural gas, sulfuric acid and other key inputs needed to produce battery-grade lithium.
Zimbabwe has also struggled for years to get platinum miners to refine the metals locally. The latter, who ship the concentrates to South African refineries, say Zimbabwe does not produce enough electricity or minerals to support the huge capital expenditure needed to build refineries.
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