Zimbabwe’s government has imposed strict restrictions on the export of raw lithium, in an effort to reduce black market sales and prevent foreign firms from profiting by shipping off billions of dollars worth of the mineral.
The measures go into effect on December 21st, with the government hoping it will boost governmental revenue and help the nation to pay off some of the nearly $14 billion in foreign debt the African nation has built up.
Zimbabwe’s Ministry of Mines and Mining Development published a document noting, “ensure that the vision of the president to see the country becoming an upper-middle income economy has been realized.”
Mines Minister Winston Chitando said, “No lithium-bearing ores, or unbeneficiated lithium whatsoever, shall be exported from Zimbabwe to another country except under the written permit of the minister.”
Reuter reports however that three major Chinese miners, with a combined $678 million in lithium mines and processing plants, have been granted exemptions from the ban in return for their investments in Zimbabwe over the past year.
Zimbabwe holds Africa’s largest deposits of lithium, which has proven vital for manufacturing everything from smartphones to electric vehicle batteries. It was estimated Zimbabwe lost $12 billion through the dealings of small scale operations engaging in illegal trade, as well as multinational companies. The missing funds would have almost been enough to eliminate all of Zimbabwe’s foreign debts.
Of Zimbabwe’s export earnings, roughly 60% are made up of mineral exports, while mining comprises roughly 16% of GDP.
As demand for lithium surges, Zimbabwe is poised to become one of the largest exporters of the metal. The government has stated it hopes to supply 20% of the world’s lithium demand once it is fully exploiting its mineral resources by engaging in refining, manufacturing, and technology development.
Deputy mining minister Polite Kambamura said, “If we continue exporting raw lithium we will go nowhere. We want to see lithium batteries being developed in the country. We have done this in good faith for the growth of industry.” He added that any lithium miners who also invest in processing plants in the country will be exempt from the new directive.
