Mining ZimbabweLatest Mining News, Policy and Industry Updates

A Chinese company, under the guise of an environmental partnership, has been caught misleading Zimbabwe’s Environmental Management Agency (EMA) while exploiting the Umzingwane River for illegal mining.

The company, known as Friends of the Environment, had initially promised to assist in closing pits left by artisanal miners, but instead, it was found conducting mining activities in the riverbed, damaging critical infrastructure and worsening water shortages in the region.

EMA has since terminated the partnership with Friends of the Environment, but questions remain as to whether any legal action has been taken against those responsible. The controversy came to light last week following a visit to Matabeleland South by Tafadzwa Muguti, secretary for presidential affairs and devolution. Muguti had toured major dam catchment areas, witnessing firsthand the environmental destruction caused by illegal mining.

The company’s operations resulted in significant damage to a bridge at the confluence of the Umzingwane and Inyankuni rivers. Local officials say this destruction contributed to reduced water inflows into dams that supply the city of Bulawayo. Muguti described the situation: “We had a Chinese company here, Friends of the Environment, who partnered with EMA, but it turned out that by day they were closing pits, and by night they were illegally mining.”

The bridge, spanning 150 meters, was completely destroyed as the company sought gold, which, according to Muguti, halted water flow in the river and exacerbated the region’s water crisis. Despite recent rainfall, the dams have seen little improvement in water levels, as illegal mining continues to restrict the flow of water.

Muguti added that the government had issued a directive calling for intensified efforts against illegal alluvial mining across the country. “This is a disaster,” he said, referring to the bridge collapse, which has had a significant impact on water availability for Bulawayo.

While Zimbabwe has seen a surge of investments from Chinese mining companies, Muguti warned that not all investors are committed to the country’s long-term benefits. “Not everyone is coming here for the benefit of Zimbabwe,” he stated.

David Coltart, the mayor of Bulawayo, has also raised concerns about the ongoing issue of illegal mining, which is severely impacting the city’s water supply. At a recent community meeting in Nkulumane, Coltart recounted his own investigation into the matter, revealing the dire situation: “I rode my bicycle 40 kilometers towards Umzingwane Dam and was shocked to find not a single stream flowing despite the recent rains. The reason? Illegal gold panning.”

The environmental fallout from illegal mining activities continues to threaten both local ecosystems and essential resources, putting communities like Bulawayo at risk of severe water shortages.

Kuvimba Mining House is set to finalize an agreement this month with two prominent Chinese companies, continuing its commitment to a $270 million lithium project despite recent price downturns, according to CEO Trevor Barnard.

The company remains optimistic that lithium prices will recover as electric vehicle (EV) demand in China remains strong, coupled with the closure of some lithium mines.

Lithium prices have plummeted by over 80% since their peak in November 2022, driven by an oversupply of the metal and slower-than-anticipated growth in EV sales. However, analysts predict a stabilization in prices this year, driven by robust EV sales and mine shutdowns, which should help bring balance to the market. Barnard remains hopeful that prices will rebound, though he cautioned that they are unlikely to return to the record highs seen in 2022, a period he describes as a “bubble” fueled by overblown demand projections.

Zimbabwe, currently Africa’s largest producer of lithium, has attracted significant investment in the sector, with over $1 billion flowing into lithium projects since 2021, much of it from Chinese battery metal companies. In 2024, it was reported that Zhejiang Huayou Cobalt and Tsingshan were poised to partner with Kuvimba to develop the Sandawana mine. Huayou had acquired Prospect Lithium in 2022, while Tsingshan is involved in the development of the Dinson steel plant and the Gwanda Lithium mine.

Barnard highlighted the project’s promise, stating that after a thorough review, Kuvimba determined Sandawana’s resource quality and scale were compelling enough to move forward with plans to establish a 600,000 metric ton per year lithium concentrator at the mine.

Chinese firms such as Zhejiang Huayou Cobalt, Sinomine Resource Group, Chengxin Lithium Group, Yahua Group, and Canmax have been particularly active in acquiring lithium assets in Zimbabwe, positioning the country to strengthen its role in the global battery metal supply chain.

Small-scale miners have called on Fidelity Gold Refinery (FGR) to expand its operations by investing in exploration and ensuring the availability of critical mining supplies such as explosives and chemicals, Mining Zimbabwe can report.

By Rudairo Mapuranga

Speaking to this publication on the sidelines of the Zimbabwe Miners Federation (ZMF) Strategic Meeting held at Cresta Lodge, ZMF Matabeleland South Chair Philemon Mokuele highlighted the difficulties miners faced in 2024 due to shortages in key inputs and a lack of geological data, which continue to hinder gold production and delivery.

Mokuele stressed that without a consistent supply of explosives and chemicals, gold output remains vulnerable to disruptions, adding that it is crucial for FGR to intervene by facilitating the availability of these resources.

“We are facing quite a number of challenges, especially last year. We were facing a challenge of explosives and chemicals… This is something Fidelity must look into,” Mokuele said.

He emphasized the importance of FGR playing a more significant role in ensuring a stable supply of key inputs for small-scale miners by investing in the production and distribution of explosives and chemicals, critical for mining operations.

In addition to addressing supply chain challenges, Mokuele underscored the need for FGR to invest in exploration activities. He pointed out that while miners are being given loans to boost production, a lack of comprehensive geological information often leads to failure in meeting loan obligations.

“We also expect the government through Fidelity to venture into exploration. As small-scale miners, we can have all these claims, and they can give us the loans. But as long as we don’t know where the resource is, we end up failing to pay this money. We advise the government through Fidelity to buy diamond drilling rigs—at least one diamond drilling rig per province—and do proper exploration so that they find a proper project where they know the resource. It won’t fail,” he said.

Mokuele believes that if FGR were to engage in proper exploration efforts, this would significantly increase gold production and enable small-scale miners to meet their loan repayments while contributing to the country’s gold bullion targets.

He also shed light on the social contributions of small-scale miners in their communities. Beyond mining, they are actively engaged in supporting youth sports and aiding vulnerable groups, such as orphans and disadvantaged children.

“As small-scale miners, we are helping our communities; we are doing a lot in our communities. We are sponsoring sports like soccer and basketball. We are also assisting in orphanages, buying groceries, donating, and supporting those who are less privileged,” he said.

Mokuele’s comments reflect the broader social responsibility initiatives that small-scale miners have undertaken, despite the challenges they face in the sector.

After years of remarkable growth, 2024 was a disappointing year for the global electric vehicle (EV) industry, leading to a significant slowdown in global lithium demand.

By Rudairo Mapuranga

However, projections for 2025 suggest a recovery is on the horizon, driven largely by renewed interest in EVs, particularly in China. Yet, as the world prepares for a rebound in lithium demand, Zimbabwe’s role as a critical supplier remains under scrutiny, with the benefits to the local economy still in question.

Globally, lithium prices suffered a dramatic fall in 2024, declining by as much as 80% from their peak. The oversupply of lithium, particularly from Australia and China, compounded the issue, forcing some higher-cost miners to reduce output. Looking ahead, demand is expected to increase by 26% to 1.46 million tonnes of lithium carbonate equivalent (LCE) in 2025, driven by growth in the EV sector, particularly in China, where EVs now represent more than half of all vehicle sales. The rise in energy storage systems (ESS) is also expected to play a significant role in driving demand for lithium.

For Zimbabwe, one of the world’s emerging lithium producers, this global recovery presents both an opportunity and a challenge. Zimbabwe is home to significant lithium reserves, yet the country continues to face challenges in ensuring that its lithium industry benefits the local economy. While Zimbabwe has attracted significant foreign investment, particularly from Chinese companies, concerns have been raised about the lack of local participation in the sector.

The Problem of External Benefits

Many lithium mining operations in Zimbabwe, such as Bikita Minerals, have been criticised for benefiting foreign entities rather than the local economy. Bikita Minerals, one of the country’s most significant lithium producers, has been accused of relying heavily on Mozambique-based contractors. The sight of Mozambique-registered trucks transporting lithium out of Zimbabwe highlights a larger issue: the proceeds from Zimbabwe’s lithium are leaving the country, often to Chinese companies based in Mozambique. Additionally, most contractors working at these mines are Chinese, leaving little room for local employment and skills transfer.

Similarly, Prospect Lithium Zimbabwe (PLZ), owned by Huayou Cobalt, a Chinese battery manufacturing giant, is another example of foreign dominance in the sector. PLZ controls the entire value chain, from extraction to battery manufacturing, meaning it essentially sells the lithium it mines to itself. This vertical integration allows Huayou to maximize profits while Zimbabwean companies and the local economy are left with crumbs. The lack of local ownership in the industry prevents Zimbabwe from reaping the full rewards of its lithium sector, especially as global demand for the mineral rises.

One operation that stands out for its relatively neutral approach is Kamativi Mining Company. Unlike other lithium miners in Zimbabwe, Kamativi has taken steps to avoid selling lithium to its own affiliated companies, instead working with external players such as Tesla to produce batteries. This approach has allowed Kamativi to position itself as a more transparent and independent player in Zimbabwe’s lithium industry. However, despite this neutrality, Kamativi still faces criticism for its reliance on Chinese workers, with the majority of skilled positions filled by foreigners. The issue of skills transfer remains a major challenge, as local Zimbabweans are often left out of the more technical roles.

The Path Forward

Despite these challenges, there is optimism that Zimbabwe’s lithium sector will grow alongside global demand. As EV production ramps up, particularly in China, Zimbabwe is poised to play a critical role in supplying the lithium required for batteries. However, for this growth to truly benefit Zimbabwe, there must be a concerted effort to ensure that more of the value chain remains within the country. This includes increasing local employment, fostering skills transfer, and developing local lithium processing facilities.

The recovery of global lithium prices in 2025 could provide Zimbabwe with an opportunity to renegotiate terms with foreign investors and push for more local involvement. As companies such as Tesla seek stable, long-term lithium suppliers, Zimbabwe could leverage its position to demand more from foreign companies operating within its borders.

As the global lithium market recovers in 2025, Zimbabwe’s potential to become a leading player in the sector is clear. However, the benefits to the local economy remain limited due to the dominance of foreign companies and a lack of local involvement in the industry. To truly capitalise on the lithium boom, Zimbabwe must focus on increasing local participation, ensuring that the wealth generated by its lithium reserves benefits the country and its people. The road ahead for Zimbabwe’s lithium industry is promising, but only if the necessary steps are taken to ensure that Zimbabweans are not left behind as the world shifts to greener energy solutions.