Premier African Minerals says Zimbabwe’s recent suspension of lithium concentrate and raw mineral exports is meant to “target specific issues” in the sector and should not derail the future of its already troubled Zulu Lithium project.
The Ministry of Mines announced last week that it was suspending exports of lithium concentrate ore and some raw minerals as it investigates suspected under-invoicing by producers. Premier, however, believes the move is targeted.
“This suspension is understood to target specific issues, and we do not consider that it will create any problems for future production from Zulu,” says Graham Hill, MD of Premier.
The Zulu Lithium project, near Fort Rixon, has faced a string of delays, largely due to design flaws at its processing plant. This broke a supply deal with Chinese tech firm Canmax. Under the original terms of that agreement, Premier was to deliver 48,000 metric tons of spodumene concentrate in exchange for the US$35 million it got from Canmax to build the plant. As part of the settlement, Canmax has now become a major shareholder in Premier.
While Zulu Lithium is small compared to Zimbabwe’s larger lithium operations, its ownership highlights the global interest in the metal. Premier is listed on the London Stock Exchange’s Alternative Investments Market. Canmax is partly owned by China’s CATL, the world’s largest EV battery manufacturer and a key supplier to Tesla and Ford.
Premier says it has already submitted plans to the Ministry that align with government’s push for beneficiation, and that it sees the suspension as “targeted at specific issues” and that it would not “impede Zulu’s future commercial production strategy.”
Mines Permanent Secretary Pfungwa Kunaka says the export suspension is designed to give government room to tighten oversight.
“Our ores are multi-mineral in nature and bear more than one element. Therefore, the suspension will enable us on a whole-of-government basis to ensure our policies and measures are complied with,” Kunaka told The Sunday Mail. He says government is increasing laboratory capacity to “test export consignments for mineral composition and verify declared weights”.
