Cabinet slams door on raw mineral exports in bold value-addition drive

STAFF WRITER

Zimbabwe has outlawed the export of raw minerals and lithium concentrates in a sweeping policy shift aimed at tightening accountability, entrenching local beneficiation and capturing greater value from its vast mineral wealth.

The decision, approved by Cabinet this week, represents one of the most forceful interventions yet in the mining sector, a clear declaration that the era of exporting unprocessed resources is drawing to a close.

Authorities say the move is designed to accelerate industrialisation, deepen domestic processing capacity and ensure the country maximises returns from a sector that has become the backbone of the economy.

Mining has surged to the centre of Zimbabwe’s economic architecture. Apparently, mineral export earnings have climbed to over US$5.6bn, up from approximately US$2.7bn in 2017, reflecting both expanded output and rising global demand for critical minerals.

The sector now contributes more than 13.3% to Gross Domestic Product and accounts for nearly 80% of Zimbabwe’s total export receipts, a dominance that places mining at the heart of the country’s economic stability.

Information, Publicity and Broadcasting Services Minister, Dr Zhemu Soda said Cabinet had endorsed the proposal tabled by the Minister of Mines and Mining Development.

“Cabinet approved the ban on raw mineral exports and lithium concentrates as presented by the Minister of Mines and Mining Development, Honourable Dr Polite Kambamura,” he said.

The ban takes immediate effect and applies to all raw mineral exports, including consignments currently in transit.

The Zimbabwe Revenue Authority (ZIMRA), the Minerals Marketing Corporation of Zimbabwe (MMCZ) and other regulatory agencies have been instructed to enforce the suspension without exception.

Government has called for full cooperation from mining companies, framing the measure as a national economic imperative rather than a punitive clampdown.

The directive builds on earlier bans targeting unprocessed chrome and lithium exports, reinforcing a broader value-addition thrust that seeks to shift Zimbabwe from extractive dependency to manufacturing-led growth.

For years, policymakers have argued that exporting raw minerals deprived the country of significant downstream revenue, jobs and technological transfer, while foreign processors reaped the bulk of the profits.

The new stance is also anchored in legislative reform.

Government is finalising the Mines and Minerals Amendment Bill, which replaces the outdated 1961 Act. The revised framework introduces community benefit-sharing provisions, mandatory social investment obligations for mining companies and a digital mining cadastre system aimed at enhancing transparency and reducing corruption in the allocation of mining rights.

Mines and Mining Development Minister Dr Kambamura has already outlined tightened export protocols aligned with the new beneficiation push.

Under the revised requirements, only mining companies holding valid mining titles and approved beneficiation facilities will be authorised to export minerals.

“Agents and third-party traders are not authorised to export minerals on behalf of mining title holders,” Dr Kambamura said.

“In addition to other supporting documents for export permit applications, applicants must also attach a recommendation letter from the relevant Provincial Mining Office, clearly stating beneficiation capacity, compliance status with ministry regulations and statutory requirements.”

Applicants must also declare the full mineral composition of each consignment, with the ministry reserving the right to conduct verification testing at any time. No export application will be processed without full compliance.

Dr Kambamura warned that the continued use of expired or exhausted export permits constitutes a serious offence and could result in the withdrawal of both export permits and mining titles.

Government believes the ban will fast-track the establishment of beneficiation plants, stimulate job creation and position Zimbabwe as a competitive player in the global green energy transition, particularly in lithium processing.

Zimbabwe holds substantial lithium reserves at a time when global demand for battery minerals — driven by electric vehicle production and renewable energy storage, continues to surge.

Officials argue that processing lithium concentrates locally into higher-value products such as lithium sulphate and battery-grade materials will significantly boost export revenues and strengthen foreign currency inflows.

The beneficiation push is already reshaping investment patterns.

High-profile projects cited as evidence of this shift include Huayou’s US$400m lithium sulphate plant and Sinomine’s planned US$500m facility at Bikita Minerals.

In the steel and platinum value chains, the Dinson Iron and Steel Project, the Zimplats smelter expansion and newly commissioned coke oven batteries are being presented as tangible outcomes of the policy direction.

Authorities insist that previous bans on raw mineral exports have triggered increased investment in smelters, concentrators and processing infrastructure, laying the foundation for broader industrial transformation.

While some operators may face short-term adjustments, Government maintains that the long-term benefits, higher export earnings, deeper industrial capacity and enhanced economic sovereignty, outweigh transitional pressures.