Lithium production in Zimbabwe has grown exponentially in the past three years, with exports surging from US$7 million in 2022 to over US$600 million in 2023.
Investments exceeding US$3 billion have flowed into the sector since 2021, creating more than 5,000 direct and indirect jobs.
Key players, including Bikita Minerals, Prospect Lithium Zimbabwe (PLZ), Sabi Star, Kamativi, Bravura, and Sandawana, are advancing beneficiation plants, some with capacities of up to 600,000 tonnes annually.
Bikita Minerals, owned by China’s Sinomine, is one of three companies alongside PLZ and Kamativi that have committed a combined US$700 million to build lithium sulphate plants.
These projects align with the government’s goal of ensuring more minerals are processed locally instead of being exported in raw form.
Speaking earlier this year at the Chamber of Mines AGM in Victoria Falls, Bikita Minerals Managing Director Xuedong Gong underscored the need for government incentives, tax holidays, and policy stability to sustain momentum in the sector. “Realised through value addition and beneficiation, we know that by processing locally, we stand to gain more than by exporting raw materials,” Gong said. “But investor confidence is low due to policy uncertainty.
What we did last year is completely altered by new directives this year. ” Gong argued that clear, consistent policies on licensing, taxation, and exports are essential if Zimbabwe is to attract and retain serious investors.
He was particularly critical of the current royalty and levy structure, which he said penalises beneficiation by charging the same rate on processed lithium as on raw products, plus an additional 5% levy on beneficiated output. “Infrastructure is another bottleneck,” he added. “For new investments in lithium, we require basic infrastructure such as roads, power, and water supply.
The lack of these in lithium-rich regions drives up costs and limits competitiveness. ” Global lithium prices have declined sharply, putting pressure on miners who have invested heavily in midstream and downstream operations.
Gong warned that without supportive measures such as tax holidays for new investments, the drive toward value addition could stall. “We are not just digging, we are processing.
We’re building an industry.
But for Zimbabwe to lead Africa in lithium, government support is critical,” he said.
He also called for flexibility in labour policies to allow high-investment projects to import specialist skills when necessary, while continuing to hire locally and build community infrastructure.
The 27 August conference at Bikita Minerals is expected to provide a platform for frank discussions between producers and policymakers on these challenges.
Delegates will share project updates, explore policy reforms, and identify strategies to align Zimbabwe’s lithium ambitions with global market realities.
With the industry’s rapid growth, the stakes are high.
If the right policies, infrastructure, and incentives are put in place, Zimbabwe could not only meet its US$12 billion mining industry target but also establish itself as a global hub for battery-grade lithium. “Lithium is a gift to Zimbabwe.
Let’s treat it with care.
Give us stable policy, reliable infrastructure, and supportive partnerships, and we will lead Africa in lithium. ”. 🔗 Read Full Article
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