Zimbabwe has the potential to supply
20 per cent of the world’s lithium, the mines minister from Africa’s top
producer of the alkali metal used in batteries for electric vehicles said on
Wednesday.
20 per cent of the world’s lithium, the mines minister from Africa’s top
producer of the alkali metal used in batteries for electric vehicles said on
Wednesday.
Zimbabwe is keen to attract capital
to its mining sector after the ousting last year of former President Robert
Mugabe after almost four decades in power and is pushing lithium as a major
draw for investors.
to its mining sector after the ousting last year of former President Robert
Mugabe after almost four decades in power and is pushing lithium as a major
draw for investors.
“We believe we have the potential to
actually account for 20 per cent of global demand when all known lithium
resources are being exploited,” Winston Chitando told a mining investment
conference in the capital, Harare.
actually account for 20 per cent of global demand when all known lithium
resources are being exploited,” Winston Chitando told a mining investment
conference in the capital, Harare.
Zimbabwe is a top 10 of lithium
producer but currently produces only a fraction of the worldwide total. It aims
to supply 10 per cent of the world’s lithium in four years.
producer but currently produces only a fraction of the worldwide total. It aims
to supply 10 per cent of the world’s lithium in four years.
Prices for lithium have more than
doubled in the past two years on forecasts for massive demand from the electric
vehicle industry. That has sparked work on a flurry of new mines and expansion
plans for existing ones.
doubled in the past two years on forecasts for massive demand from the electric
vehicle industry. That has sparked work on a flurry of new mines and expansion
plans for existing ones.
Zimbabwean Vice-President
ConstantinoChiwenga told the conference Zimbabwe would impose a 15-per cent
penalty tax from Jan 1, 2019 on exports of platinum producers, who do not build
refining facilities in the southern African country.
ConstantinoChiwenga told the conference Zimbabwe would impose a 15-per cent
penalty tax from Jan 1, 2019 on exports of platinum producers, who do not build
refining facilities in the southern African country.
The tax has been mooted since 2013
and been delayed a number of times to provide producers with time to comply.
and been delayed a number of times to provide producers with time to comply.
His presentation showed that the tax
would eventually fall to five per cent without giving a specific time frame,
while companies could also qualify for a lower tax depending on how much
product they were refining domestically.
would eventually fall to five per cent without giving a specific time frame,
while companies could also qualify for a lower tax depending on how much
product they were refining domestically.
Zimbabwe has some of the world’s
largest platinum reserves but is keen to industrialise an economy that is still
largely reliant on primary commodity production focused on agriculture and
mineral extraction.
largest platinum reserves but is keen to industrialise an economy that is still
largely reliant on primary commodity production focused on agriculture and
mineral extraction.
Platinum producers in Zimbabwe
include Zimplats, a unit of South Africa’s Impala Platinum, Anglo American
Platinum and Sibanye-Stillwater.
include Zimplats, a unit of South Africa’s Impala Platinum, Anglo American
Platinum and Sibanye-Stillwater.
Amplats in December said it was
nearing completion of a platinum group metal smelter at its Unki mine in
Zimbabwe.
nearing completion of a platinum group metal smelter at its Unki mine in
Zimbabwe.
Implats said last year that “neither
the smelter nor the export levy is affordable” and could result in the closure
of its Mimosa mine.
the smelter nor the export levy is affordable” and could result in the closure
of its Mimosa mine.
