The Zimbabwe government announced a ban on the export of unprocessed raw materials, especially lithium, on Feb. 25 as part of its efforts to promote the processing of raw materials inside the country. In the announcement , Minister of Mines and Mining Development Polite Kambamura said the move includes all minerals “currently in transit.”
Chinese companies are complying by building processing plants in Zimbabwe, according to Sputnik.
Zimbabwe is the world’s fourth largest source for lithium, a critical mineral for batteries, the aerospace industry and high tech electronics. Domestic processing will not only generate more revenue and jobs, but will further the country’s industrialization. Rich in natural resources such as iron ore and cobalt, Zimbabwe has been demanding local processing.
Chinese companies are taking the lead in this effort, including Zhejiang Huayou Cobalt, which invested $400 million in the Prospect Lithium Zimbabwe plant, set to process 400,000 tons annually. Another is Mutapa Energy Minerals, a $270 million facility, funded by Chinese partners, set to handle 600,000 tons yearly. Sinomine Resource Group’s Bikita Minerals is building a $500 million lithium sulfate plant.
Already in 2024, the Chinese private steel company Tsingshan Holding Group finished building its Zimbabwe subsidiary, Dinson Iron and Steel Company (DISCO). The massive $1.5 billion integrated steel plant began producing pig iron in June 2024 and is designed to produce 600,000 tons of carbon steel annually in its initial phase, with plans to expand to 5 million tons in later phases. The exploitation of its rich deposits of iron ore and coal are now being refined, enabling the country to be free of imports it would have to pay for with U.S. dollars or some other “hard” currency.
