State arms manufacturer, the Zimbabwe Defence Industries (ZDI) has been granted a special permit to export raw lithium by the government.
ZDI, which has a vast investment portfolio in mining got approval to export lithium in October last year, according to The Independent.
Context:
The latest development comes at a time when Zimbabwe is experiencing a lithium rush following the discovery of the lucrative and strategic mineral in some parts of the country, particularly at Sandawana Mine in Mberengwa, Midlands province last year in December.
The discovery of the metal at Sandawana Mine and other areas around the country positions Zimbabwe to play a dominant role in the production of lithium.
Zimbabwe, which produced 1 200 metric tonnes of the mineral in 2021 is the world’s fifth largest producer.
In a bid to restore order in the areas where the globally sought-after mineral is being informally mined, the government swiftly banned the exportation of unprocessed lithium.
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ZDI was given the green light to ship an estimated 100 00 tonnes of lithium monthly, reportedly to China, which is a major global consumer of the mineral alongside the United States (US).
According to The Independent, Mines ministry chief director Mercy Manyuchi signed off the deal after the arms manufacturer’s application indicated that it: “was well positioned to obtain lithium ore from a mine in Chikwanda Communal lands in Masvingo.” A source told the publication:
ZDI applied for permission to export lithium ore. The company declared that they would obtain the lithium ore from a mine under the registration number: 17079BM, in Chikwanda Communal Lands in Masvingo Province.
ZDI was granted an exemption letter to export lithium ore in October 2022.
The source reportedly added that the Mines and Mining Development ministry had indicated that it, however, had no “traceable record of ZDI’s involvement in exporting nor mining of one of the most important minerals in high demand globally today.”
Questions posed to Manyuchi and Mines and Mining Development minister Winston Chitando drew blanks.
Defence minister Oppah Muchinguri said she was not aware of the permit and only Commander of the Zimbabwe Defence Forces (ZDF) Phillip Valerio Sibanda was in the right position to comment. The Independent quotes her as saying:
I am not aware of what happens at ZDI. As you are aware ZDI is a company that has its board and management and its operations are independent. Therefore, as the minister, I am not aware.
She suggested that questions be referred to the CDF.
Over the years, ZDI has furthered its commercial interests in the mining sector resulting in the formation of platinum mining firm Great Dyke which is a joint venture with a Russian consortium comprising VI Holdings, Rostec and Vnesheconombank.
ZDI also held shareholding in Chinese companies Anjin Investments and Jinan Mining that mined diamonds in Marange.
ZDI was slapped with sanctions by the US and other Western countries in 2002 over allegations of propping up the late president Robert Mugabe’s oppressive government.