On May 27, National Business Daily learned from authoritative local media in Zimbabwe and Xinhua News Agency that the Zimbabwean government recently issued the "Mineral Classification and Declaration," which explicitly designates lithium and other high-value minerals as "critical minerals" subject to equity and export controls. A total of 14 critical minerals are covered, including lithium, nickel, cobalt, graphite, copper, rare earth elements, chromium, platinum group metals (PGMs), manganese, antimony, uranium, ruthenium, tungsten, and niobium. The classification is based on five criteria: supply chain vulnerability (prone to disruption and conflict), high international demand combined with domestic advantages, status as raw materials for manufacturing industries both domestically and internationally, ability to generate employment and economic benefits, and low abundance/low grade but high value.
Zimbabwe has established the principle that the state may exercise mandatory minimum shareholding through designated Special Purpose Vehicles (SPVs) in the extraction of critical minerals. Although the declaration has not yet specified exact percentage figures, it stipulates that no entity may mine any mineral on the classified list in Zimbabwe without the state as a co-owner.
In response to this new policy, African financial media Equity Axis and Zimbabwe's authoritative mining industry outlet Mining Zimbabwe analyzed that the move mimics Indonesia's "nickel industry roadmap" – which banned exports of unprocessed nickel ore, forced foreign companies to build smelters, and used state-owned enterprises to negotiate equity stakes, ultimately gaining control of over 40% of global nickel refining capacity. Compared to Indonesia's nearly ten-year timeline, Zimbabwe's "replication" has taken less than three months. However, the analyses noted that the declaration is still a framework agreement, not a final decision. Market participants and mining companies should closely monitor several key implementing regulations expected to follow, including: the exact shareholding percentages of SPVs in each specific mineral, a beneficiation classification table defining "processed" versus "raw" materials, a template for transition plans allowing companies to maintain exports during plant construction, and specific penalty and enforcement mechanisms.
Since April this year, Zimbabwe's restrictions on lithium exports have drawn significant market attention. Earlier restrictions on lithium concentrate exports mainly involved establishing local beneficiation facilities, while the latest policy includes state equity participation.
SMM will continue to follow up on this matter.
Source:National Business Daily
