Zim eyes expansion of mineral exploration

Bulawayo (New Ziana) – Zimbabwe can boost revenue from the mining sector if it expanded mineral exploration, and increased production in the industry, a cabinet minister has said.

Mines and Mining Development Minister Zhemu Soda said this at a Lithium and Battery Minerals conference held on the sidelines of the ongoing Mining, Engineering, and Transport Exhibition (Mine Entra) at the Zimbabwe International Trade Fair Exhibition Centre.

The conference, which was jointly convened by School of Mines and the Ministry came at a time demand for lithium and other minerals used in the manufacture of batteries such as tantalum, graphite, nickel, manganese and tin have risen sharply on the global market due to the growth of green energy industries that are involved in the
manufacture of electric motor vehicles and energy storage devices.

“At this moment, Zimbabwe is under explored when it comes to mineral findings. Exploration of our vast mineral resources results in increased revenue generation.

“Our country can boost its revenue generation by investing in the exploration and discovery of new battery mineral deposits that can be extracted and sold to global markets,” said Soda.

He noted that investors wishing to invest in highly promising companies are often attracted by mineral exploration
projects leading to long term investments by foreign companies.

“Successful exploration of our mineral resources therefore leads to long-term investments by foreign companies as exemplified by the recent commissioning of the Prospect Lithium Zimbabwe and Sabi Starr Lithium mines and processing plants,” he said.

“Most of these foreign companies have injected a total of above USD 600 Million into the various projects. Other notable sustainable benefits of Mineral Exploration include employment creation, economic diversification and technology transfer,” Soda said.

He said that the mining industry in Zimbabwe is anticipated to make a significant contribution to the country’s attainment of Vision 2030’s goal of becoming an Upper Middle-Income Economy by 2030 with lithium and other battery minerals being the largest contributors.

“The current major exporters in the Lithium Sector have been Bikita Minerals from Masvingo Province but the surge in demand for the mineral has seen new major producers, Prospect Lithium Zimbabwe and Sabi Star. Other major producers are expected to start operations in 2024 and these will contribute to the expansion of the sector,” he said.

Soda also told the delegates that revenue generated from exports of lithium have increased significantly from US$1,8 million in 2018 to US$70 million in 2022.

He said that by September this year, a total of US$ 209 million had been realised from lithium exports, adding that, “this has been a very impressive improvement.”

Soda said the rise in demand for lithium and battery minerals has presented a number of opportunities for Zimbabwe as a nation.

“These opportunities stem from the fact that our nation is blessed with an abundance of the lithium resource, making it one of the top producers in Africa and the world. Due to this demand, new investors, both local and foreign, have entered the sector to mine, process and export lithium and battery minerals from Zimbabwe,” said Soda.

Government was tightly controlling the sector to ensure there were no leakages that could deprive the country of earnings.

“Firstly, a ban on export of raw base mineral ores that include lithium and other base minerals, was introduced to stop their rampant exportation in raw form. The move by the Government was aimed at halting these exports to
ensure more value is realised from the vast lithium and battery mineral reserves discovered so far in the country,” Soda said.

“Secondly, Statutory Instrument 57 of 2023 was gazetted with regards to lithium mining and processing. It gives the requirements for one to export lithium in great detail. The ban and introduction of the Lithium Ore Policy presented an opportunity to the mining industry to invest in value addition and beneficiation,” he said.

Soda underscored the need for retooling and introduction of new technology in the mining sector so as to increase efficiency and productivity.

“There is an opportunity in the resuscitation of closed mines and expansion of the operations of existing mines,” he said.

New Ziana