The restrictions on lithium exports under the government’s new Base Minerals Export Control Act do not apply to companies that are building lithium processing plants, including Chinese mining giants Zhejiang Huayou Cobalt, Sinomine Resource Group and Chengxin Lithium Group (which together have acquired US$678 million worth of lithium mines in Zimbabwe).
Zimbabwe holds the largest lithium deposits in Africa and the fifth-largest in the world. The country is also home to the world’s third-largest platinum deposits, along with large deposits of other high-value mineral resources like gold, chrome, coal and diamonds. But Zimbabwe exports just a fraction of its vast mineral riches each year due to problems within its mining sector (such as corruption and mismanagement), which remain pervasive despite politicians’ repeated attempts to revamp the country’s mining economy.
The Bikita mine, located 308 kilometers (191 miles) south of the capital Harare, has approximately 10.8 million tons of lithium ore. The Arcadia lithium mine under construction about 38 km (24 miles) east of Harare is also expected to reach an annual production of 2.5 million tons of lithium ore (which would total about $3 billion in exports) once the mine begins operations.
The government’s push to boost its mining sector will face significant obstacles, as patronage and corruption have undermined the efficiency of Zimbabwe’s mining sector for decades. Civil society groups, political opposition parties and human rights watchdogs have repeatedly levied allegations regarding the concentration of mining assets in the hands of ZANU-PF members and supporters. While the ruling party almost always rebuffs these accusations, political connections largely dictate how and when industry laws and regulations are enforced. Such an environment facilitates personal enrichment and quid pro quo deals, which ZANU-PF officials routinely engage in across all sectors of the economy. A 2021 report released by the South African publication Maverick Citizen found that public officials in Zimbabwe regularly abuse their political positions and collude with private companies for self-enrichment, and that companies in the country’s private sector also regularly collude with each other — creating an uncompetitive business environment that siphons billions of dollars worth of public funds each year. Human rights groups like Amnesty International have also drawn connections between politicians and machete gangs known as ”mashurugwi” that police mining locations and enforce politicians’ personal agendas. A rise in mashurugwi-related attacks – and security forces’ apparent inability to stop them — prompted the Mnangagwa government to declare a crackdown on the gangs in 2022. But persistent high rates of violence and alleged relationships between government officials and gang members suggest this declaration was unauthentic.
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