Gvt gazettes Local Lithium Processing Regulations
By Harry Taruva and Delicious Mathuthu
The Government of Zimbabwe through the Ministry of Mines and Mining Development has gazetted local lithium handling laws that seek to minimise illegal exports and the undervaluing of the mineral.
Mines and Mining Development Minister, Hon Winston Chitando, through Statutory Instrument 57 of 2023, has gazetted that all handling and processing of lithium and lithium ore in the country is subject to licensing.
Minister Chitando said any breach of the regulation is punishable by two years in prison or a fine twice the value of the mineral they are found with.
The new law, dubbed the Base Minerals Export Control, now regulates mining, storage, transportation and sale of lithium ores and its value-added materials.
“Under the powers conferred upon me by Section 3(1)(a) of the Base Minerals Export Control Act (Chapter 21:05) I Wiston Chitando, MP Minister of Mines and Mining Development, by this my order direct that with immediate effect as follows:
…“Lithium bearing ore” means any mineral ore containing lithium;
“Unbeneficiated lithium” means any lithium in whatever form that has not undergone processing which shall meet the technical specifications which are a target of 3% Lithia and above for spodumene and 2.5% Lithia for petalite and lepidolite,” reads part of the Instrument by the Minister.
Minister Chitando said those wishing to venture into lithium processing and transportation should first acquire an Approved Processing Plant (APP) license.
“Any individual or entity which owns a lithium concession can mine lithium ores for either:
a. processing at its own Approved Processing Plant (APP)
b. for sale to those with APP.
“Any individual and or entity wishing to process lithium ores will be required to acquire an APP license.
“Ore movement permits for lithium ores will only be issued where such ores are destined to an APP,” the new law states.
Lithium ores can only be stored at the mining site, Minister Chitando said, where the ore was mined, or at an approved APP.
For lithium transportation, a license is needed again and proof that the transporter owns a lithium processing plant through the APP license.
“Any individual or entity will require a Lithium Ore Purchase License (LOPL) to buy ores from miners.
“An APP will be a condition of getting the LOPL,” Minister Chitando said in the Statutory Instrument.
He said a level 9 fine will be imposed for all illegal lithium handling, or a prison sentence.
“It shall be an offence: For anyone to buy lithium ores without an approved LOPL.
“For any mining entity to sell ores to a customer who does not hold a LOPL.
“For anyone to transport lithium ores without an ore movement permit
“For anyone to process lithium ores without an APP.
“For anyone to store lithium ores at a site which is not the mining site where the lithium ores were mined or a site with an APP.
“For any entity to get an APP it should demonstrate the plans and capacity to process lithium ores to specifications outlined in clause 9 below.
“Any person who contravenes section 8 above shall be guilty of offence and liable to:
A fine not exceeding level 9 or twice the value of the base minerals in respect of which the offence is committed, whichever is greater; or
imprisonment for a period not exceeding two years,” he said.
He also said a summary of monthly reconciliations of all ore movement will be submitted to the Ministry of Mines and Mining Development.
For lithium export, Minister Chitando said approval will be issued first to ensure the lithium concentrate meets the minimum selling price as set by the Minerals Marketing Corporation of Zimbabwe on a regular basis.
Meanwhile, he said miners who had lithium ore prior to the 2022 Statutory Instrument 213 will be given temporary export permits, for at most 6 months, after proving that the ore was indeed mined before the law.
“[On] Transitional
Arrangements, for those players in the lithium sector who had lithium ore stocks at their mining sites and warehouses which had been mined with a view of exporting them before the promulgation of SI 213/22 the following shall apply;
a. Within 30 days after promulgation of this Statutory Instrument, all the affected people shall register their stocks with the Ministry of Mines and Mining Development which shall verify that the ores were mined before the SI 213/22 came into force.
“b. The affected people shall be given a one-off permit valid for 6 months after which they will not be able to sell their stocks,” Minister Chitando said.
Any waivers to these provisions shall only be under the written permit of the Minister.
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