Government bans export of raw lithium ore …..as CoMZ and ZMF hails the move

THE government has banned the exports of raw or unprocessed lithium as demand for the ‘green metal’ continues to surge.

Zimbabwe boasts of many lithium greenfield projects in places like Goromonzi, Mberengwa, Shurugwi, Zvishavane, Bikita and Mutoko, worth multi millions and it has the largest lithium reserves in Africa and the fifth biggest in the world.

Winston Chitando, Minister of Mines.

In a Statutory Instrument 213 of 2022 gazetted last week, the export of raw or unprocessed lithium was effectively banned by the mining authorities.

“…No lithium bearing ores, or unbeneficiated lithium whatsoever, shall be exported from Zimbabwe to another country except under written permit of the Minister.”

For any miner or entity wishing to export lithium, the SI 213 0f 2022 directed that express authority has to be sought from the Minister of Mines and Mining Development. If granted the approval to export, the SI stipulated that a commensurate VAT payment has to be remitted.

“On written application by any party— wishing to export samples of lithium bearing ore or unbeneficiated lithium for assaying outside Zimbabwe; or to a miner or exporter of lithium upon production of written proof satisfactory to the Minister that there are exceptional circumstances justifying the exportation in question and that the lithium bearing ores or unbeneficiated lithium in question have been valued in terms of section 12D(3) of the Value Added Tax Act [Chapter 23:12] for purposes of payment of the export tax on unbeneficiated lithium..” read part of the SI

Henrietta Rushwaya, Zimbabwe Miners Federation president 

“…any person who contravenes or fails to comply with any order or with the terms and conditions of any permit issued to him or her under an order shall be guilty of an offence and liable to— (i) a fine not exceeding level 9 or twice the value of the base minerals in respect of which the offence is committed, whichever is the greater; or (ii) imprisonment for a period not exceeding two years; or to both such fine and such imprisonment,” further read parts of the SI.

Speaking to The Financial Gazette this week, Zimbabwe Miners Federation president Henrietta Rushwaya said lithium mining in the country was marred by leakages leading to the loss of revenue to the government, compromising the attainment of the $12 billion mining economy by 2023 target.

“There are lots of leakages and the government continues to lose out on revenues. As a country we are not realising the true value of the resource that we possess as a nation.

“We want the participation of serious players in the beneficiation process so as to create jobs for local indigenous Zimbabweans for us to attain the US$12 billion mining economy target.

Two week ago, while presiding over the groundbreaking ceremony for a new US$130 million Sabi Star Lithium Mine in Buhera, President Mnangagwa said it was his expectation that the development of the Lithium mining sector in the country will lead to growth in value chain linkages in the manufacturing industry.

On his part Chamber of Mines of Zimbabwe chief executive Isaac Kwesu said, we note the Government’s new thrust on lithium beneficiation as enshrined in the new SI 213 of 2022. The new legislation appears somewhat flexible to accommodate unique situations in the lithium value chain, specifically new entrants or new projects that may require minister approval for special export considerations.