According to Yahoo, Zimbabwe prohibited the export of raw lithium from its mines so it can cash in on value addition and stop losing billions of dollars in mineral proceeds to foreign companies.
The Ministry of Mines and Mining Development on Thursday, Dec. 20 published a circular under the Base Minerals Export Control Act that seeks to “ensure that the vision of the president to see the country becoming an upper-middle income economy has been realized.”
The government says it is losing $1.8 billion in mineral revenues due to smuggling and externalization to South Africa and the United Arab Emirates. Gold is the most smuggled mineral.
“No lithium-bearing ores, or unbeneficial lithium whatsoever, shall be exported from Zimbabwe to another country except under the written permission of the minister,” mining minister Winston Chitando says in the circular.
However, according to deputy mining minister Polite Kambamura, mining companies that are building processing plants will be excluded from the directive.
“If we continue exporting raw lithium we will go nowhere. We want to see lithium batteries being developed in the country,” he said. “We have done this in good faith for the growth of the industry.”
With continued high international demand, Zimbabwe is projected to become one of the world’s largest lithium exporters, with the government hoping to meet 20% of the world’s total demand for lithium when it fully exploits its known lithium resources.
