Interest in Zimbabwe’s lithium a timely reminder for robust policies promoting local beneficiation and control.
Last week China’s biggest lithium processor, Zhejiang Huayou acquired controlling rights to Zimbabwe’s Arcadia mine, majority owned by Australian emerging energy minerals company Prospect Resources. The US $ 422 million lithium deal has attracted significant media attention and mixed public sentiment. The ensuing polarization pulls back the veil on broader socio economic and political forces at play in natural resource deals in Zimbabwe – a microcosm of the rest of Africa. Where some sections were upbeat about Zhejiang Huayou’s acquisition as a beacon of progress for Zimbabwe’s economy and a catalyst for jobs and tax revenue for the national fiscus, others were more circumspect. Sceptics bemoaned what they see as government’s lack of foresight in securing a stake given lithium’s strategic value as the new gold for the auto industry’s burgeoning clean energy market. Except, there are five other lithium projects – all licensed before the Arcadia one. So, what is ...