Zimbabwe’s push to process lithium domestically has drawn $1bn in investment, but smaller miners warn they risk being excluded without support for infrastructure and fair access to processing facilities.
Zimbabwe’s government has tightened restrictions on unprocessed mineral exports, aiming to boost domestic beneficiation and retain more value from its lithium reserves. The policy, which includes a 2022 ban on unbeneficiated lithium ore, has attracted significant investment, with officials reporting over $1bn in funding for the lithium value chain. However, smaller producers argue they face barriers like high processing costs and limited access to facilities, raising concerns about whether they will benefit from the shift.
Government Policy Drives Investment in Domestic Processing
Minister of Mines and Mining Development Polite Kambamura highlighted the progress made under the new policy, stating, The construction of the first lithium sulphate plant in Africa is behind me, and this was done in Zimbabwe.
The government emphasizes that domestic processing could create jobs, strengthen local suppliers, and retain a larger share of mineral wealth. According to Kambamura, the policy has already spurred investments in facilities like Prospect Lithium Zimbabwe (PLZ), a Chinese-owned operation where the lithium carbonate plant is 90% complete.
PLZ public relations officer Patience Mushore noted that Huayou’s investments had generated over $1.1bn in foreign exchange for Zimbabwe. The company’s plant, part of a broader push to expand local refining capabilities, is a key example of how the policy has attracted capital. Meanwhile, public policy expert Tedious Ncube argued that the focus on beneficiation demonstrates the government’s commitment to leveraging mineral wealth for national development.
Challenges for Smaller Miners Amid Expansion
Despite the investment surge, smaller producers like Naivo Mining’s Shelton Lucas warn that the transition risks leaving them behind. Lucas, who oversees chrome, antimony, and tungsten projects, said, For our raw chrome, we are now forced to sell to local Chinese smelters where they underpay us. For antimony, I have the resources to build the value-addition plant, but for chrome I cannot because the plant is very expensive.
Lucas proposed a toll-smelting system, where public institutions or industry bodies invest in shared processing facilities that miners could access at transparent rates. The challenge is not only building processing plants, but also ensuring smaller producers can access capacity on fair terms,
he said. Without such measures, he warned, larger companies could dominate processing and market access, creating a predatory market
that undermines small-scale miners.
Economists and industry observers note that Zimbabwe’s processing ambitions depend on overcoming long-standing challenges, including unreliable electricity and limited financing. The government has not yet outlined specific support mechanisms for smaller producers, leaving many uncertain about their role in the evolving sector.
State-Funded Projects Signal Growing Confidence
Zimbabwe’s state-owned lithium miner, Mutapa Energy Resources, has secured $300 million from a group of investors, including Chinese entities, to develop its assets. CEO Innocent Rukweza called the deal “a done deal,” though he declined to name all the investors due to regulatory requirements.
What’s Next for Zimbabwe’s Mining Sector?
The success of Zimbabwe’s lithium ambitions will hinge on whether smaller producers can access the benefits of domestic processing. While large-scale investments like PLZ’s plant and Mutapa’s $300 million deal signal growing confidence, the lack of clear support mechanisms for smaller miners remains a critical uncertainty. Officials have not yet outlined specific policies to ensure equitable access to processing capacity, leaving the sector at a crossroads between industrial growth and inclusion.
As the government continues to enforce export restrictions, the next few months will be crucial in determining whether Zimbabwe’s mineral wealth translates into broader economic benefits. For smaller producers, the coming period will test whether the promise of domestic beneficiation extends to those who have long been sidelined in the country’s mining industry.
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