Multinational resource firms controlling vast interests in Zimbabwe’s lithium fields earned up to US$20 000 per tonne from exports to international markets after extracting the mineral at production costs of about US$370 per tonne, latest export calculations show, as fresh details emerge from the fallout of a controversial February ban.
That represents a gain of more than 50 times, according to Obert Bore, programmes manager at the Zimbabwe Environmental Law Organisation.
It is the latest evidence of a deep structural dislocation in Zimbabwe’s extractive industries and across African resource-rich economies, where value addition remains externalised, leaving producing nations with marginal returns.
A few years ago, similar investigations into raw tobacco exports showed multinationals reaping up to 14 times more value after processing, compared to prices paid for Zimbabwe’s raw leaf. The country still exports over 90% of its premium crop.
Bore spoke as implications of the February export ban imposed by Mines minister Polite Kambamura continue to unfold, exposing both the scale of past leakages and the risks of abrupt policy correction.
Industry leaders told the Zimbabwe Independent they are locked in crisis engagements with foreign buyers who placed large orders prior to the ban and are now threatening legal action over delayed deliveries. Negotiations between government and international clients are ongoing to resolve disrupted contracts.
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The policy shift carries significant legal exposure for mining firms with binding supply agreements, while also choking cash flows. Major lithium producers employing more than 9 000 workers say they are scaling back operations, with some weighing job cuts as stockpiles build. Smaller domestic players have already been hardest hit, with industry bodies describing a “bloodbath” as firms shut down.
Yet beyond the immediate disruption lies a far deeper scandal — what has quietly been leaving Zimbabwe’s shores for years.
Bore revealed that high-value lithium by-products have been exported alongside concentrates, stripping the country of primary value and critical associated minerals. This mirrors long-standing concerns in the platinum group metals sector, where valuable by-products are routinely externalised.
“The figures from the Minerals Marketing Corporation of Zimbabwe (MMCZ) show that to export at least a tonne of concentrate, the price is around US$150 to US$300, and when you process lithium to carbonate or hydroxide, the value jumps to around US$18 000 per tonne,” Bore said.
“When you look at the Base Metal Export Control Act, it specifies minimum processing thresholds for lithium minerals such as spodumene and petalite, but does not address other valuable associated resources that should be declared for royalty purposes.
“This is critical because research has shown Zimbabwe’s lithium deposits contain significant quantities of rare elements such as cesium, rubidium and beryllium, which are highly valuable.”
The scale of the value gap is staggering.
Zimbabwe exported 1,52 million tonnes of raw lithium last year, generating US$571,56 million — an average of about US$375 per tonne.
Had the same output been processed locally into battery-grade lithium carbonate, volumes would have reduced to between 180 000 and 227 000 tonnes, but earnings would have surged to between US$3,65 billion and US$4,61 billion at current global prices.
Gains were largely captured offshore, particularly by Chinese firms dominating Zimbabwe’s lithium sector.
In February, government responded by suspending exports, including shipments already in transit, in a bid to force local beneficiation.
But the shock has not spared even state-linked institutions.
The MMCZ told the Independent last week the ban is costing it about US$500 000 in monthly revenue — reflecting how deeply exposed even government agencies were to the very export model now under attack.
Senior analyst at Project Blue, Jordan Roberts, said: “I think the export ban is strategically logical, but execution will be everything. The quicker that happens, the better for the stability of the lithium market.”
He noted that global markets are already reacting.
“Although it takes roughly two months for shipments to reach China, we will begin to see the real impact from May onwards, when the last pre-ban consignments arrive,” he said.
“At the same time, demand is rising sharply, driven by energy storage systems as regions such as China, the US and Europe ramp up renewable energy adoption.”
Up to 9 000 jobs in the sector are now at risk.
With exports halted, firms are unable to generate revenue, placing severe strain on operations.
Kamativi Mining Company public relations officer Rutendo Mapfumo said the firm, projected to produce between 350 000 and 500 000 tonnes annually, is already under pressure.
“Due to the export ban, the company is operating in full compliance but is currently unable to export or sell its products. Production may need to be scaled down or even suspended entirely,” she said.
“This would directly impact employment and disrupt operations, with far-reaching effects on livelihoods and business continuity.”
Rising overheads, including electricity costs, are compounding the crisis as stockpiles grow.
“This restriction is placing significant pressure on cash flow, potentially making it impossible to cover essential operational costs,” Mapfumo said.
Across the sector, firms continue to mine, but are stockpiling output, while legal risks mount.
“The ban has serious legal implications for miners who had existing supply commitments. They could be exposed if buyers pursue legal action,” an industry official said.