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Lovemore Chikova Development Dialogue

The statement that ‘Zimbabwe is open for business’ has been reverberating throughout the whole world since the new dispensation occurred in 2017, and investors who heeded the call early have had a headstart ahead of their peers.

In the mining sector, Chinese investors have been investing heavily in Zimbabwe in recent years, a move that is seen as a result of the Second Republic’s investor friendly policies and its openness in doing business.

These investments are being seen as contributing to the country’s attainment of a US$12 billion mining industry by next year, and also making great strides in advancing Zimbabwe’s economy through creating jobs and bringing in new technologies.

Zimbabwe’s mining industry will never be the same again because of the investments that are coming from the Asian country, which are in high value mining sectors such as lithium.

In the recent past, there have been some attempts from some quarters to trivialise these investments, but no amount of discrediting can overshadow the transformation that is being witnessed in the mining sector in Zimbabwe.

Zimbabwe has been under illegal sanctions from the United States and the European Union for nearly two decades, and the presence of Chinese miners is helping the country to stay connected to global business.

For instance, Chinese mining company Zhejiang Huayou Cobalt, which recently acquired Acardia Lithium Mine, just outside the capital, Harare, from Prospect Resources of Australia, has connection to various parts of the world.

The global footprint stretches to as far as South America, Africa, Indonesia and China, as well as a customer base in the United States, Europe, China and South Korea.

This easily links Zimbabwe to these markets despite that it is under unilateral sanctions from the West. For Zimbabwe, Huayou has already started creating employment for locals, with thousands of employees already at its mining site in Goromonzi.

The capacity of the mine is very huge, and its impact will be felt by the Zimbabwean economy for a long time.

The mine is expected to produce about 4,5 million tonnes of ore per annum, translating to roughly 400 000 tonnes of lithium concentrate per annum and this surely has the capacity to transform Zimbabwe’s economic status within a short period.

Experts in the mining sector note that Huayou’s Arcadia project is Africa’s most advanced lithium project and would further elevate Zimbabwe’s status, already world fifth largest producer of lithium, to a major global producer of battery lithium minerals.

Speaking after Huayou took control of Arcadia Lithium Mine a the end of last year, President Mnangagwa gave a seal of approval to the deal.

That he officiated at the signing ceremony of a binding agreement between Prospect and Huayou for the development of the lithium project summarised the positive approach from Government with regards to Chinese miners.

“This is a positive development in the country’s mining sector, as we will continue to march towards the attainment of a $12 billion mining sector by 2023,” President Mnangagwa said.

“The decision by Huayou to partner with Prospect Resources is a testament of confidence in my government’s policies and our economy. It also reaffirms the success of our mantra, ‘Zimbabwe is open for Business’ and will leapfrog our country into lithium production and value chains.

“The commitment by Zhejiang Huayou Cobalt to rapidly advance operations at Arcadia is a welcome development.”

Mines and Mining Development Minister Winston Chitando also hailed the contribution of Chinese mining firms to Zimbabwe.

“Chinese miners have been investing heavily in Zimbabwe, especially recently when they started to venture into lithium mining,” he said. “Zimbabwe considers these investments worthwhile and will ensure that the investments are protected under the agreed frameworks.

“Our policy is that Zimbabwe is open for business, and it is indeed open to all those investors interested in coming to country, as long as they follow the proper procedures.”

It important that Minister Chitando outlined the fact that foreign mining firms do not just wake up with mining claims.

“Foreign miners do not just end up operating in the country and this means the Chinese miners are going through the proper procedures,” he said. “But we urge both government and Chinese miners to improve on communication channels to avoid conflict with villagers and those in areas where there are such concessions.”

Another major Chinese mining venture is the Sinomine Resource Group which launched a US$200 million project to build a plant and expand existing mining operations at its recently acquired Bikita Lithium Mine in Masvingo province. President Mnangagwa officiated at Sinomine’s launch event at Bikita Lithium Mine, which is expected to employ hundreds of people and contribute to Zimbabwe’s economic growth.

The game-changing project by Chinese miner, Sinomine Resource Group, is viewed as putting Zimbabwe among the top lithium producing countries.

“It is my expectation that the development of the lithium mining sector in Zimbabwe will lead to the growth of value chain linkages in the manufacturing industry,” said President Mnangagwa during the event.

“This should translate into expanded local production of renewable energy technologies, ceramics, glass, lubricants and polymers, among other products.

“The investment by Sinomine Resource Group should, thus, not only end in the production of spodumene, but should graduate to the production of battery grade lithium and ultimately lithium ion battery manufacturing entities.”

Zimbabwe recently welcomed another Chinese top miner, the Tsingshan Holdings Group, the world’s top producer of nickel and stainless steel, which is constructing an iron ore mine and a carbon steel plant in Mvuma, about 190km from Harare.

This is a one-billion-dollar project, which upon completion will become one of the largest steel plants in Africa, and will catapult Zimbabwe to a major producer of steel.

The project is an important venture whose presence will have a positive impact on the prospects of Zimbabwe achieving its set targets in economic growth. Apart from major projects like the ones cited above, there are also a number of Chinese miners in various sector resources.

Anjin, for example, is another major Chinese company mining diamonds at Chiadzwa in Manicaland province, and has gained the experience in dealing with the mineral resource for the benefit of Zimbabwe.

In May 2020, the Government allocated fresh diamond mining claims to Anjin Investments, which is owned by Anhui Foreign Economic Construction Company Limited of China and Matt Bronze, a Zimbabwean investor.

In another show of the Government’s positive attitude towards Chinese miners in Zimbabwe, President Mnangagwa mid this year commissioned Radnor Mine’s gold crushing plant run by a joint venture called ZimCn Investments in Mashonaland East province.

The gold mining project is a result of a partnership between local and Chinese investors and will see the unlocking of value from the country’s abundant mineral resource endowment.

During the commissioning ceremony, locals reflected positively on Chinese miners in Zimbabwe.

Mashonaland East provincial Chiefs Council chairperson, Chief Nechombo, said they were excited by the coming in of ZimCn Investments to extract gold in the mineral rich area.

“As traditional leaders in Mashonaland East province, we are happy with the opening of Radnor Mine,” he said. “As a country we need to fully utilise our God given mineral resources. The advent of this company in Makaha (in Mashonaland East Province) has seen the rehabilitation of our road infrastructure and they are also drilling boreholes in the community to mitigate water challenges.”

Zimbabwe Miners Federation president, Ms Henrietta Rushwaya, said the Radnor mining project was consistent with Government policy of leaving no one and no place behind when it came to development.

“Gone are the days when people in rural communities will be left out as far as development is concerned,” she said. “Also gone are the days when local communities would not benefit from skills transfer.”

Chairman of the Zimbabwe National Liberation War Veterans Association Cde Christopher Mutsvangwa, said the coming in of major miners from China indicated a new and larger wave of foreign direct investment into Zimbabwe’s booming mining sector from the Asian country.

“The buy-out of Arcadia Lithium by Huayou Chemicals of China is a historical record in the merger and acquisition story of Zimbabwe since the 1890 colonial dawn,” he said. “The bountiful lithium and cobalt mineral resources of Zimbabwe are finally hogging the attention of the new energy green billionaires of the world.”

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