Foreign mining companies should follow Zimbabwe laws

Foreign mining companies must ensure their operations in Zimbabwe benefit indigenous citizens, who are the rightful owners of the country's natural resources. This was the message from Remigious Matangira, Chairperson of the Parliamentary Portfolio Committee on Mines and Mining Development, during a tour of Bikita Minerals Sinomine on Monday.

Matangira, who is also the legislator for Bindura South, led a delegation of parliamentarians to the Bikita Minerals lithium mine, where they observed the extraction process and toured the recently commissioned spodumene processing plants. These facilities process lithium ore into concentrate, which is then packaged for export.

Speaking during the tour, Matangira emphasized the need for foreign mining companies to comply with Zimbabwean laws and policies to ensure the country's natural resources benefit local citizens. "Lithium miners came to Zimbabwe, and they have got to follow what we want in terms of our laws and policies," Matangira said. "If it was Mali or DRC, they would do what is done there, but they are here—we eat what we kill."

The Zimbabwean government has called on lithium mining companies to submit their refining plans by March 2024, in line with its policy to ensure mineral beneficiation. This strategy aims to maximize the value Zimbabwe derives from its natural resources by encouraging local processing before export.

During the tour, Bikita Minerals Managing Director Xuedong Gong informed the legislators that a global decline in lithium prices was affecting the mine's operations. Gong also highlighted challenges with Zimbabwe’s taxation regime, noting that royalties and other costs amounted to nearly 30% of the mine's revenue, making profitability difficult. He also noted that new lithium discoveries in countries such as Mali were creating greater supply on the international market.

In response to concerns about environmental degradation and pollution raised by local communities, Bikita Minerals stated that it had drilled more than 36 boreholes to benefit nearby residents. Additionally, Bikita West legislator Daniel Nhatiso Makusha commended the mine for providing diesel and casings for further borehole drilling.

Chief Marozva, a local leader, called for the amendment of outdated mining laws, many of which were inherited from the colonial era. He urged legislators to craft new laws that balance investor interests with community benefits. "The challenge to you legislators is that you must amend colonial mining laws that favour investors if our people are to truly benefit," said Chief Marozva.

Bikita Minerals has announced plans to invest around US$500 million over the next three years to build a lithium sulphate plant, a move that will advance the company's goal of manufacturing lithium batteries in Zimbabwe, further contributing to the country's economic growth.