Chinese lithium deal hits turbulence

plummeted in the aftermath of hard-hitting western sanctions on Harare.

The massive push by Chinese investors into Zimbabwe’s multibillion dollar lithium mines has raised fresh fears of plunder with a leading resource campaigner pushing for stronger parliamentary oversight.

The Zimbabwe Coalition for Debt and Development (Zimcodd)’s red flags were raised recently after it became clear that the government was pushing ahead, parcelling out strategic assets to foreign firms without giving legislators room to assess such transactions.

In the past three months, Chinese firms have announced two deals worth a combined US$558 million to take over lithium mines in Harare and Masvingo, as the rush to control entire the value chain escalates.

Lithium is a key raw materials in electric vehicles (EV) production, and China is the world’s biggest manufacturer.

In the Zhejiang deal, Zimbabwe will pocket only US$30 million in taxes, with the rest of the funds going to foreigners.

Sinomine Resource Group Co. Ltd (SRGCL) is taking over Bikita Minerals for US$180 million, becoming the second Chinese outfit to make inroads into the sector.

In December, “There is a concern around mining deals in Zimbabwe because there is a huge lack of exploration and geological survey data by the government,” Zimcodd said in recently.

“Minerals like lithium are strategic resources the country should leverage so that all citizens, born and unborn enjoy value.

“The undertaking of exploration gives bargaining power in the conclusion of these mining deals.

“It is also concerning to note that the deals involving strategic assets are also being concluded without the oversight of the people through the Parliament.

“Zimcodd believes that Parliament should take an active role to safeguard natural resources since it stands for the people through representative democracy.”