Multi-mineral ores targeted . . . Govt moves to plug revenue leakages

Debra Matabvu THE recent suspension of exports of raw minerals and lithium concentrates is meant to prevent the smuggling of multi-mineral ores that would have been intentionally misdeclared as a single, lower-value or less-regulated minerals, enabling traffickers to bypass export restrictions, avoid taxes and conceal the presence of high-value resources, it has been revealed. The […]

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Debra Matabvu

THE recent suspension of exports of raw minerals and lithium concentrates is meant to prevent the smuggling of multi-mineral ores that would have been intentionally misdeclared as a single, lower-value or less-regulated minerals, enabling traffickers to bypass export restrictions, avoid taxes and conceal the presence of high-value resources, it has been revealed.

The latest move will, therefore, ensure that Zimbabwe benefits from value addition and accurate declaration of mineral exports.

Last week, Mines and Mining Development Minister Dr Polite Kambamura directed the Zimbabwe Revenue Authority (Zimra), the Minerals Marketing Corporation of Zimbabwe (MMCZ) and other regulators to ensure the immediate suspension of exports of all raw minerals and lithium concentrates, including consignments that were already in transit.

Permanent Secretary in the Ministry of Mines and Mining Development Mr Pfungwa Kunaka told The Sunday Mail that the suspension affects all minerals — not only lithium — that had not yet left Zimbabwe’s borders at the time of the announcement.

“The statement made it clear export processing of all materials (including those) in transit was suspended, as long as it had not left our borders when the statement was made,” he said.

“This affected not lithium alone but others. Where there was lack of clarity, the ministry followed up to clarify for the purpose of Zimra and MMCZ and other stakeholders, including the Chamber of Mines.”

He said most of Zimbabwe’s ores are multi-mineral in nature, meaning they contain more than one valuable element.

“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, particularly our thrust on value addition and beneficiation of our minerals,” he said.

Multi-mineral ores can contain combinations of lithium, tantalum, tin, nickel, platinum group metals, chrome or rare earth elements.

If exported as raw ore and declared as a single mineral, the country risks losing revenue from the undeclared or unprocessed associated minerals embedded in the same consignment.

Through beneficiation, ores are processed locally to separate and concentrate individual minerals using crushing, milling, flotation and chemical separation processes.

This ensures each mineral component is quantified, taxed and sold at higher value, rather than being exported in bulk at lower prices.

For example, lithium-bearing pegmatites may also contain tantalum and tin, while platinum ores can carry nickel, copper and other by-products.

Separating these minerals locally allows Zimbabwe to capture full value across the mineral chain instead of exporting blended ore at discounted prices.

The Government, Mr Kunaka added, is strengthening enforcement mechanisms to ensure compliance with the ban and broader beneficiation policy.

“Collectively, we are ready. Previously we had a ban on exportation of raw mineral ores. Now we are insisting on proof of mining title, proof that consignment has gone through testing, particularly mineral elements content, including weight check, required documentation.”

He said mineral laboratory capacity is being urgently enhanced to test export consignments for mineral composition and verify declared weights.

Laboratory testing involves sampling consignments to determine precise mineral content using geochemical and metallurgical analysis, ensuring exporters accurately declare all elements present.

Weight verification prevents under-declaration or manipulation of tonnage, which can result in revenue leakages.

By strengthening laboratory capacity and inspection systems at points of export, authorities aim to close loopholes that allow misclassification, under-invoicing or smuggling of high-value minerals.

More than US$1 billion has been invested in lithium processing and value-addition plants across the country in recent years, with several facilities now at various stages of development.

Some of the plants are set to be operational next year.

The enhanced compliance regime also requires exporters to provide recommendation letters from provincial mining offices confirming beneficiation capacity and regulatory compliance, alongside declarations of mineral composition for each consignment.

National interest, accountability

Announcing the suspension on Wednesday, Minister Kambamura said the measure was taken in the national interest and forms part of Government’s broader push for transparency, in-country value addition and accountability in mineral exports.

“Government expects cooperation of the mining industry on this measure which has been taken in the national interest,” said Dr Kambamura.

He said only mining companies holding valid mining titles and approved beneficiation plants will be authorised to export minerals, while agents and third-party traders are barred from exporting on behalf of title holders.

Regulatory authorities, including Zimra and MMCZ, have been directed to deny clearance to any consignment not supported by valid export permits and complete documentation.

The latest development builds on earlier efforts to enforce a blanket ban on raw mineral exports.

In January, authorities launched an investigation following the discovery of Zimbabwean mineral ores stockpiled at the Port of Beira in Mozambique, amid concerns that they may have been smuggled out in violation of export restrictions.

Deputy Chief Secretary in the Office of the President and Cabinet (Presidential Communications) Mr George Charamba told our sister paper The Herald in January that President Mnangagwa had directed an immediate investigation into the matter.

He reiterated at the time that Government had imposed a blanket ban on the export of mineral ores to promote local value addition, with lithium initially exempted pending the establishment of beneficiation capacity at centres such as Prospect Lithium Zimbabwe and Bikita Minerals.

“In terms of Government policy, I wish to remind everyone who is involved in mining, as well as our law enforcement agencies who man our ports of entry, that Government took a position of slapping a blanket ban on the exportation of mineral ore with a view to ensuring that there is greater value addition activity on our minerals,” he said then.

“Inside the country, clear benchmarks were set for each mineral.

“The only mineral which was exempt from this ban was lithium.

“In view of the ongoing investments towards beneficiation, which are taking place at two mining centres, namely Prospects Lithium Zimbabwe in Goromonzi and also at Bikita Minerals, even then Government encouraged miners who are involved in the extraction of lithium to enter into some relationship with those two beneficiation centres with a view to ensuring that come 2027, January, no lithium ore will be allowed to leave the country.

“So, it is very important for those involved in mining, as well as our law enforcement agencies, to abide by this position of Government and to enforce that position respectively.

“In the event that the stockpiles in Beira are found to relate to minerals to which this ban applies and that they found their way beyond our territory without the necessary permission, Government, working closely with the sister Republic of Mozambique, will ensure that the bridge is repaired swiftly and without fear or favour.”

President Mnangagwa has consistently urged the mining sector to prioritise beneficiation, noting that while minerals account for more than 60 percent of Zimbabwe’s exports, exporting raw ores limits the sector’s contribution to industrialisation and socio-economic development.

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