Lithium output projected to reach 1,1m tonnes

ZIMBABWE’S lithium production is projected to reach 1,1 million tonnes in 2024, benefiting from various mines already commissioned and additional ones set to be opened next year.

Lithium production in Zimbabwe reached 882 000 tonnes as of November 2023, and the figures have been fluctuating, with low production of just 417 tonnes recorded in 2020.

The country, which reportedly holds the largest lithium deposits in Africa, is poised to become a global player in the sector upon completion of lithium projects.

Experts estimate that 20 percent of the world’s lithium demand can be met by Zimbabwe if it fully exploits its reserves.

As the world moves towards zero net emissions, lithium will drive economic growth in producing countries.

Presenting the 2024 National Budget, Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube said production is set to increase as more companies invest in capacity.

“Lithium output is expected to increase to 1,1 million metric tonnes, benefiting from various mines such as Zulu Mine and others that have already been commissioned in 2023, together with additional companies expected to be commissioned in 2024,” he said.

The Government believes Zimbabwe — with a significant resource endowment of platinum group metals (PGMs), gold, lithium and diamonds — can undergo economic transformation and development anchored in beneficiation.

This comes as the Government has, over the past five years, been exploring possible methods of ensuring beneficiation of minerals, with policies targeting mostly platinum, diamonds, gold and chrome. Its intention is to unlock the backward and forward linkages in the mining sector so as to create jobs.

In December 2022, the country banned the export of unprocessed lithium, with exemptions for large producers, after increased artisanal miners’ activity within the sector.

However, following the ban on raw lithium exports, several Chinese companies that made multimillion-dollar acquisitions in Zimbabwe are setting up lithium processing plants.

According to Minister Ncube, Prospect Resources Zimbabwe, Bikita Minerals and Zulu Lithium have successfully constructed lithium processing plants to beneficiate ore to the second stage of concentrate.

“The aim is to beneficiate lithium up to the carbonate level, the fourth state of beneficiation in the medium term. The ultimate objective is the local manufacturing of lithium batteries for electric vehicles,” he said.

Chinese firms — including Zhejiang Huayou Cobalt, Sinomine Resource Group, Chengxin Lithium Group, Yahua Group and Canmax Technologies — have spent more than $1 billion over the past two years to develop lithium projects in Zimbabwe.

Chamber of Mines of Zimbabwe chief executive officer Mr Isaac Kwesu said the mining industry subscribes to the beneficiation agenda, but a balance needs to be struck between ensuring that the sector remains growing and contributing as much as it can.

Mr Kwesu said the Government must take into consideration the uniqueness of the lithium sub-sector when engaging the producers.

“All these process issues are going to be taken into consideration — the industry subscribes to beneficiation, but we still have to make sure we balance and ensure the mining sector remains growing and contributing as much as it can,” he said at a post-budget meeting recently.

The mining sector is expected to grow by 7,6 percent in 2024, driven by ongoing investments in PGMs, gold, coal and lithium, among other minerals, and the sector is expected to maintain growth momentum in the medium-term, estimated at 4,9 percent and 4,8 percent in 2025 and 2026, respectively.

The Government’s thrust is to increase beneficiation along the mining value chains to facilitate job creation through the development of a comprehensive policy framework that prohibits the export of raw minerals.

Brokerage firm IH Securities said with increased activity in the mining sector, Government has also fine-tuned some regulations to fully harness the fiscal potential of the industry.

Lithium-producing companies have also been given a deadline of March 31, 2024 to submit their beneficiation plans as the Government seeks to tap into substantial revenues that can be generated from the value addition of key minerals.

The mining sector contributes significantly to the country’s gross domestic product, accounting for 12,8 percent and 13,2 percent in 2021 and 2022, respectively.

It is envisaged that continued investment in the beneficiation of minerals into diverse products will earn the country more revenue and export receipts.