Unlocking blessings of Zim's lithium resource

BY PHILIPA JAJA

A recent column in The Standard titled, Lithium is Zimbabwe's new curse, appears to throw cold water on the country’s massive prospects brought about by the global demand for lithium.

Lithium, a key metal in the manufacture of lithium-ion batteries that are used in electronics, electric vehicles, solar storage; and considered key in the global fight against climate change and transition from fossil fuels, is found in abundance in Zimbabwe.

Investors have flocked into the country, and will likely to do so in the next few years, given that according to authorities, Zimbabwe has only exploited less than half (40%) of its capacity.

this “lithium rush”, which has also excited local indigenous miners, has aroused global interest, not least because major countries of the world — USA and china — are locked in a battle to control key new energy source materials.

china is currently winning that battle with its companies biting into a significant chunk of the pie currently.

the question that lithium is a "new curse" is contrived and cynical.

there are many benefits that will accrue from the exploitation of the resource from local level within communities in Africa to national and global levels.

In fact, not long ago, in 2015, less than 30% of lithium demand was for batteries; the bulk of demand was split between ceramics and glasses (35%) and greases, metallurgical powders, polymers, and other industrial uses (35plus percent).

Lithium demand stems from the fact that it has the strongest charge mobility among the metals and the highest electrical storage density of known elements and, therefore, is an essential mineral for new electric technologies.

It has the highest standard oxidation potential among all elements.

It can be easily used in various battery sizes and configurations for energy storage and, thus, is called the “energy metal for the 21st century”.

the country has the largest lithium reserves in Africa and fourth largest in the world with at least 11 Mt of lithium reserves with more being expected as exploration gathers momentum.

recent investments in lithium in Zimbabwe have actually put Zimbabwe on the global map as the source of the resource and a potentially key player in the global value chain.

A number of benefits have come from these investments, as most of them have undertaken to, and embarked on, uplifting communities as they have clear and measurable goals.

chinese companies who have invested in lithium include Huayou cobalt that bought Arcadia Lithium mine in 2021, chengxin Lithium

acquired Sabi Star Lithium and Sinomine which acquired Bikita Mine in 2022.

Lithium mining companies in Zimbabwe have invested back in communities they work in ensuring their presence need not be a curse.

One vivid example is that of Huayou cobalt that acquired Prospect Lithium Zimbabwe (PLZ) and is involved in lithium mining in the Goromonzi area.

A local publication lists its contribution to the community as follows:“2022 saw Vhuta Primary School in Goromonzi being transformed.

“new classroom blocks were constructed, old ones were renovated while semi-detached teachers’ houses were constructed.

“Donations of 5 500 textbooks and furniture were also made to Vhuta Primary, Belmont Primary and Mwanza Primary and Secondary schools.”

Other interventions include prizes for the Vhuta Farmers Dry Show, Goromonzi highway road resurfacing, Goromonzi road gravelling and construction of bridges.

On security and law enforcement, PLZ donated painting accessories to Goromonzi Police Station and constructed a police base in Ward 13.

the lithium mining company, which has a mission of creating value for customers and leading industry development, will this year be concentrating its corporate social responsibility on infrastructure development and agriculture, increased company-wide commitments to reduce its environmental footprint, and boost health and education in the communities the company is operating in.

Some of the developments being undertaken by Prospect Lithium Zimbabwe are unprecedented, ironically, for an area that already boasted of a mining and farming economy.

With thousands of jobs being created across the value chain, it is cynical and ignorant to classify the development as a curse. Many investors are conscious of their role. Further, government, civil society and the media are more attuned to good governance in the natural resource governance sector.

It is prudent and forthright to point out that much of the criticism pointed at investments in the lithium sector appears to take sides in the global competition between the US and china.

the article in question, and many others from Western-leaning media, are angry on behalf of America that it is losing ground to china in the sector and global economic leadership.

the blame and smearing of chinese companies follows a well-known racist template.

As such the West, especially America, with a long history of pursuing world economic hegemony has left no stone unturned in trying to discredit chinese mining investments so as to gain an upper hand.

However, a 2018 German Institute of Global and Area Studies (GIGA) study titled ‘At Africa’s expense? Disaggregating the Social Impact

of chinese Mining Operations’, found that the effect of chinese mining companies on African local development is ambiguous.

It stated that “while proximity to chinese operated mines is associated with anti-chinese sentiments and unemployment, populations living close to chinese mining areas enjoy better infrastructure, such as paved roads or piped water.”

this not only puts to rest Western propaganda aimed at chinese lithium mining companies, but also validates the overlooked aspect of corporate social responsibility that chinese entities have been undertaking in the communities they are working in.

Additionally, the basis for the misinformed notion that the lithium resource is a curse stems from a misunderstanding regarding government and citizens’ duty to ensure that investors deliver to communities.

For example, government inability to put in place a clear cut corporate social responsibility programme for the mining sector in Zimbabwe that holds chinese mining companies accountable to the communities they operate in is to blame.

As things stand, social responsibility is only informed by the indigenisation and empowerment laws which mandate companies to earn credits through skills development, support to tertiary institutions and small to medium enterprises, local procurement, assistance to small scale miners and infrastructural development as well as any other economically or socially desirable activities agreed with the community.

notable is the absence of enforceable policies thereby exonerating chinese companies that have been blamed for not developing the communities they are working in.

Furthermore, the concept that lithium exploration is a curse overlooks the fact that conflict between resource rich communities and investors is inevitable.

communities have for long been at loggerheads with the government over mineral resources benefits although they usually have the same agenda of developing the country.

Where such standpoints result, public opinion shifts to resource abundance being a curse.

examples of this are everywhere as recently, protestors in Bolivia were protesting against a chinese lithium processing plant advocating for more public works projects and royalties for the mineral.

elsewhere in chile and even tibetan, protestors also rose in arms against the pollution of water bodies stemming from lithium exploration.

*Read full article on www.standard.co.zw *Jaja is a journalist and researcher with Ruzivo Media & Resource Centre, a Hararebased think tank.