We delve into the unfolding story in Zimbabwe, where small-scale miners are grappling with the impacts of China's growing interest in the nation's lithium resources.
In Shamva, a town in Zimbabwe's Mashonaland Central province, Brenda, a 39-year-old single mother of three, spends her mornings extracting lithium ore. Equipped with a pick and aided by her workers, she perseveres through the labor-intensive process. Brenda is among many artisanal miners working tirelessly in the lithium-rich area, approximately 90 kilometers northeast of Harare.
Zimbabwe holds the world's fifth-largest lithium reserves, a critical component for rechargeable batteries used in mobile phones and electric vehicles. In 2021, the country produced 1,200 tonnes of lithium, positioning it to become the third-largest mineral exporter after gold and platinum.
Driven by high unemployment and economic hardships, thousands of Zimbabweans, like Brenda, have obtained permits to mine lithium. However, a 2022 ban on raw lithium exports, aimed at increasing local processing and curbing smuggling, has adversely affected small-scale miners. The demand for raw lithium has plummeted, dropping its price from $1,200 to $100 per tonne, significantly reducing Brenda's income.
Economist Victor Bhoroma explains that most buyers, connected to secondary producers and global markets, dominate the value chain, leaving local miners with less than 3% of the output value per tonne. Despite this, Brenda remains in the industry, adapting by shifting focus to other minerals like gemstones and base metals to sustain her family.
China's aggressive pursuit of Zimbabwe's lithium aligns with its broader strategy of securing essential resources for its manufacturing sector. The acquisition of Bikita Minerals by China's Sinomine Resource Group in 2022 exemplifies this trend. With 11 million tonnes of lithium, Bikita Minerals is the world's largest known lithium deposit.
While the Zimbabwean government aims to boost local processing to generate higher revenues, there are significant challenges, including inadequate power supply. Additionally, concerns about environmental degradation and human rights violations have been raised against Chinese mining operations.
Farai Maguwu, director of the Centre for Natural Resources Governance, criticizes the Chinese extractive model, alleging it involves bribing politicians and displacing local communities. Comparisons have been drawn to historical colonial exploitation by European nations.
As Zimbabwe navigates this complex landscape, small-scale miners like Brenda continue to adapt, finding new ways to sustain their livelihoods amid fluctuating market conditions and geopolitical influences.
Stay tuned for more updates on this evolving story. This is James Reynold with News Now TV.
