The small-scale sector should not be left behind in the lithium revolution
Yesterday government gazetted Statutory Instrument (SI) 213 of 2022 which stated that no lithium-bearing ores, or un-beneficiated lithium whatsoever, shall be exported from Zimbabwe to another country except under written permission of the Minister.
The ban however excludes the export of lithium concentrates, which all the major lithium miners in the country are set to produce.
The SI has created uncertainty with some small-scale miners feeling that they may be sidelined by the announcement.
As the small-scale miners have for years carried the gold, chrome and semi-precious industries, they can also shine in lithium claims that may not be attractive to large-scale producers.
A typical example is the current gold production in Zimbabwe where the small-scale miners outperform primary producers. The small-scale miners trounced primary producers by a staggering 7311.61kg in submissions in 2021, and 2022 stats indicate that ASM miners submitted 22947.31kg with primary producers submitting 10361.67kg which is twice more gold than their counterparts.
As at November 30, 2022, the Henrietta Rushwaya-led miners delivered 22947.3158kg versus 10361.6738kg from Primary producers!
The government must find a long-lasting solution, mutually integrate and support small-scale lithium miners as the group has the potential to pull another shocker and lead in lithium submissions as more and more lithium discoveries continue across the country.
The government needs to create an efficient Lithium buying facility as they did with Fidelity Gold Refiners (FPR) and ensure small-scale producers are “TIMELY PAID” fair value of their minerals worth.
It is also imperative that the mistakes made on chrome buying are avoided as this has exposed miners to predatory buyers. Government should publish buying prices as they do with Fidelity Gold Refiners (FGR) to guide the local market ensuring our people are protected.
President Mnangagwa is well-known for popularising the statement “Leaving no one and no place behind” the small-scale sector should not be left behind in the lithium revolution. They have proved to be an asset in other sectors of the mining industry they can prove their worth in lithium with proper guidance and mechanisms in place.
Lithium deposits in Zimbabwe
Zimbabwe holds the largest reserves of Lithium in Africa. Areas of verified deposits in Zimbabwe include Goromonzi, Mudzi, Buhera, Bikita, Chegutu, Hwange, Harare, Insiza, Rushinga, Mutoko, Mutare and Hwange. However, Lithium has been discovered in areas such as Mberengwa, Kadoma and Bindura cementing the statement by veteran Geologist Mr Kennedy Mtetwa that “Zimbabwe is hamstrung by lack of exploration”.