A list of demands issued by government to lithium producers reveals its wide-ranging grievances with the sector, from alleged underdeclaration of minerals to low pay.
In February, government suspended exports of lithium concentrates, accusing miners of underdeclaring minerals.
Mines Minister Polite Kambamura has now written to lithium producers laying out conditions that must be met before the ban can be lifted. The demands span commitments to beneficiation, tax compliance and improved labour standards.
Kambamura’s letter demands “written commitment to building beneficiation facilities for local separation of all economic minerals before export.”
He also wants stricter disclosure requirements, saying there must be a mandatory declaration of all other minerals contained in the export consignment and full acquittal of export proceeds. Miners are also required to submit financial statements from December 2025 going forward.
In 2022, government banned exports of raw lithium, but miners had already moved into processing ore into concentrates. Authorities escalated the push last year, announcing a 2027 ban on lithium concentrates to force investment in lithium sulphate plants, a key intermediate for battery materials. A 10% tax on concentrates remains in place to drive this shift.
Major players are already moving. Bikita Minerals, owned by Sinomine, and Zhejiang Huayou Cobalt’s Prospect Lithium are developing sulphate plants. Huayou expects its US$400 million facility to start operating this year.
Kambamura has reiterated that deadline, saying “lithium sulphate plants (are) to be of standard approved by the Minister, and to be set up by 1 January 2027.”
Government will also introduce lithium concentrate export quotas for each producer.
Government also wants the industry to build two internationally accredited labs to cater for the entire sector. Companies must also set up assay laboratories at each mine within the next three months. Government sees the labs as key to accurately finding out the full mineral content of mineral consignments by measuring metals, grades and volumes.
Labour conditions also feature prominently in the new requirements. Government is demanding a “firm written commitment to build decent accommodation facilities for local employees and adjust salaries as per minimum National Employment Council (rates)”.
Each mine must also establish a SHEQ department “to address work related and environmental issues occurring at mines”.
Kambamura says: “Please note that new/future investments in the lithium sector will have the conditions applied on a case-by-case basis.” (NewZWire)
