Zimbabwe Halts All Raw Mineral Exports, Accelerating Lithium Processing Deadline by 10 Months

Standout: Zimbabwe imposed an immediate ban on raw mineral exports Wednesday, halting Africa's largest lithium concentrate trade flow and accelerating a domestic processing deadline by nearly a year, citing unspecified "malpractices" in export systems.

Zimbabwe's Ministry of Mines froze all raw mineral exports on February 25, 2026, including lithium concentrates and minerals already in transit. The ban accelerates plans originally scheduled for January 2027, leaving mining companies scrambling to build domestic processing capacity. Mines Minister Polite Kambamura offered no timeline for resumption, stating the freeze would remain "until further notice."

What Happened

The government issued the export suspension with no public advance warning to mining companies. A ministry letter dated February 17 and addressed to the Chamber of Mines flagged concerns about "continued malpractices during the exportation of minerals" and described the measure as part of efforts to "curb leakages and enhance efficiency within our systems." The ministry did not specify which companies or practices triggered the ban, leaving uncertainty about whether enforcement targets fraud, environmental violations, royalty evasion, or tax compliance.

The freeze halts even in-transit shipments, affecting a trade flow that generated over 1.1 million metric tonnes of spodumene concentrate exports in 2024 (Zimbabwe National Statistics Agency data). That figure represented an 11 percent increase from 2023, nearly all of it destined for China.

Strategic Context and Zimbabwe's Resource Nationalism

Zimbabwe holds Africa's second-largest lithium reserves after the Democratic Republic of Congo (U.S. Geological Survey 2025), with most exports flowing to China for further processing into battery-grade materials. The sector has attracted approximately $700 million in Chinese investment since 2022, including major commitments from Zhejiang Huayou Cobalt, Sinomine, Chengxin Lithium Group, and Yahua.

Mining accounts for 14.3 percent of Zimbabwe's GDP (World Bank, 2024 data), ranking second only to manufacturing. The government frames the ban as necessary to capture more value from the global transition to electric vehicles and renewable energy storage.

Zimbabwe has a complex history with resource nationalism. The country's indigenization laws (2008-2018) mandated majority local ownership in mining ventures, creating years of legal battles and deterring investment in the platinum sector. The chaotic seizure of the Chiadzwa diamond fields in the late 2000s resulted in billions in lost revenue and international sanctions. Under President Emmerson Mnangagwa, the government has softened some indigenization requirements while simultaneously tightening export controls—a pattern of ambitious resource policies followed by contested implementation.

"Government remains committed to ensuring transparency, in-country value addition and beneficiation, compliance, and accountability in the exportation of Zimbabwe's mineral resources," the ministry statement emphasized.

Industry Stakes and Processing Capacity Gaps

Huayou Cobalt's $400 million lithium sulphate plant at the Arcadia mine began operations in October 2025, with capacity to produce 50,000 metric tons of lithium sulphate annually. (Lithium sulphate is an intermediate product requiring further refining into battery-grade lithium carbonate or hydroxide, typically done in China, South Korea, or Japan.) Sinomine has announced plans for a $500 million lithium sulphate facility at its Bikita mine, with construction slated to begin in mid-2026.

While Huayou's plant represents progress, Zimbabwe's domestic refining infrastructure remains limited. Most mining operations were planning gradual expansions toward the original 2027 deadline. The abrupt acceleration leaves companies with an estimated 2-3 months of concentrate stockpiled at mine sites and ports, according to industry sources.

The Chamber of Mines has not issued a public statement. Attempts to reach Sinomine and Huayou for comment were unsuccessful as of publication.

Counterweight and Uncertainty

Several factors complicate the immediate impact assessment:

Market timing: Global lithium prices have declined sharply from late 2022 peaks due to oversupply and softer EV demand. Zimbabwe's miners have lobbied for royalty relief tied to price fluctuations, arguing that the current structure makes marginal operations unviable during downturns. The ban's timing—during a price slump—may reflect government frustration with declining tax revenues rather than a strategic industrial policy.

Enforcement and exemptions: The phrase "until further notice" leaves the duration ambiguous. The ministry indicated it would "engage the industry in the near future on new expectations and way forward," suggesting potential exemptions or modified compliance pathways for companies demonstrating domestic processing commitments.

Employment implications: Domestic processing may not generate equivalent employment, as refining is more capital-intensive and less labor-intensive than extraction. The ban's impact on mining employment remains unclear, with processing plants requiring different skill sets than extraction operations.

Implementation capacity: Zimbabwe's administrative challenges—including currency instability, power shortages, and governance issues under Mnangagwa—raise questions about the state's ability to enforce the ban consistently. The country's history with indigenization laws shows a pattern of policy reversals when implementation proves difficult or politically costly.

Legal and contractual risks: The legality of halting in-transit shipments may face legal challenges, as export contracts typically include delivery obligations. Companies may claim force majeure or seek compensation through international arbitration.

Precedent: Zimbabwe has previously suspended mining operations over compliance concerns—Sinomine faced a temporary seven-day suspension in May 2023 for undisclosed compliance issues. The government's willingness to use export bans as enforcement tools is established, but the breadth of this action is unprecedented.

Broader Geopolitical Implications

The move aligns with a broader trend among critical mineral producers tightening export controls. Indonesia banned nickel ore exports in 2020, forcing downstream investment. The Democratic Republic of Congo has implemented similar restrictions on cobalt and copper concentrates. African governments increasingly view raw mineral exports as forfeited economic opportunity.

Zimbabwe's timing coincides with heightened global competition for battery supply chains. The U.S., EU, and China are all pursuing strategies to secure lithium access, creating leverage for producer nations willing to impose conditions on resource access. The ban presents a dilemma for Western governments: Zimbabwe's move toward value addition aligns with their industrial policy goals, but concerns about policy stability and governance may deter investment.

However, the effectiveness of such bans depends on whether forced domestic processing delivers genuine value capture or simply relocates low-margin refining steps without building technological capabilities or skilled workforces. Chinese investors hold most processing technology and may simply redirect concentrate purchases to alternative suppliers in Australia, Chile, or Argentina. Australian and Chilean producers are already operating near capacity, meaning supply gaps could persist for 12-18 months, potentially tightening global lithium markets and supporting prices.

The Chinese foreign ministry has not commented on the ban. Previous resource nationalism moves in Indonesia and the DRC have led to diplomatic friction and contract renegotiations.

What Comes Next

Possible scenarios include government criteria for export resumption tied to:

• Demonstrated domestic processing investments
• Joint venture structures ensuring local equity participation
• Technology transfer commitments from foreign miners
• Compliance audits for companies claiming exemptions

Companies caught with concentrate in transit face immediate disruption. Those furthest along in building domestic processing capacity—particularly Huayou and Sinomine—may receive expedited approvals or exemptions.

The ban's ultimate impact will depend on whether Zimbabwe can translate resource nationalism into sustainable industrial development, or whether it creates bottlenecks that push buyers toward alternative suppliers. Implementation risks remain high given Zimbabwe's governance track record and limited state capacity.

Sources:

• Al Jazeera: "Zimbabwe imposes ban on exports of all raw minerals and lithium concentrate" (February 25, 2026)

Direct quotes: "Government expects cooperation of the mining industry on this measure which has been taken in the national interest." | "This review is part of a broader effort to curb leakages and enhance efficiency within our systems."

URL: https://www.aljazeera.com/news/2026/2/25/zimbabwe-imposes-ban-on-exports-of-all-raw-minerals-and-lithium-concentrate

• Zimbabwe National Statistics Agency: 2024 mineral export data (1.1M tonnes spodumene concentrate)
• U.S. Geological Survey: 2025 Mineral Commodity Summaries (lithium reserves ranking)
• World Bank: Zimbabwe economic data (mining GDP contribution, 2024)
• Ministry of Mines internal letter dated February 17, 2026 (as reported by Reuters/Al Jazeera)

Confidence assessment: High confidence on immediate policy details and export volumes; moderate confidence on enforcement duration and exemption pathways; low confidence on medium-term market impact given global lithium price volatility and Zimbabwe's implementation track record.