Cabinet approves a new Lithium Ore Policy
Cabinet has approved a new Lithium Ore Policy, which introduces new regulations for the mining and processing of lithium ores.
The policy outlines several key principles, including the requirement for any individual or entity owning a lithium concession to either mine lithium ores for processing at their own approved processing plant, or for sale to those with approved processing plants locally.
“…any individual or entity owing a lithium concession can mine lithium ores for either: (i) processing at its own Approved Processing Plant (APP), or (ii) for sale to those with Approved Processing Plants locally”
This policy seemingly aims to encourage the establishment of local processing plants, which is intended to add value to lithium resources and boost the local economy.
Furthermore, any entity wishing to process lithium ores will be required to construct an approved processing plant locally.
“…any individual and or entity wishing to process lithium ores will be required to construct an Approved Processing Plant locally,” the new policy reads in part.
The movable permits for lithium ores will only be issued where such ores are destined for a local approved processing plant to ensure the optimal utilization of the mineral.
“..ore movement permits for lithium ores will only be issued where such ores are destined for a local Approved Processing Plant, Lithium ores can only be stored at the mining site where such ores were mined, or at a approved for local Approved Processing Plant,” the policy reads.
The Lithium Ore Purchase License will be a requirement for an entity to buy ores from miners, and a local processing plant will be mandatory for getting the license. This move aims to create a structured market and encourages investment in the creation of processing plants.
“Any entity will require a Lithium Ore Purchase Licence to buy ores from miners. A local Approved Processing Plant will be a condition for obtaining getting the Lithium Ore Purchase Licence,” the policy reads in part.
The policy also outlines that all players in the lithium sector must submit a summary of monthly reconciliations of ore movements to the Ministry of Mines and Mining Development. This requirement is intended to ensure accountability, transparency, and traceability in the lithium supply chain.
At the same time, materials can only qualify as concentrate for export if they meet the minimum technical specifications and set minimum prices by the Minerals Marketing Corporation of Zimbabwe.
“…all players in the lithium sector, whether miners or holders of Approved Processing Plant, shall submit a summary of monthly reconciliations of ore movements to the Ministry of Mines and Mining Development; and for any material to qualify as a concentrate for approval for export, it shall meet the minimum set technical specifications and the minimum selling price as set by the Minerals Marketing Corporation of Zimbabwe on a regular basis,” read the statement.
Lithium is a crucial mineral for the production of rechargeable batteries used in a wide range of electronic devices, including smartphones, laptops, and electric vehicles, making this policy change significant for the industry.