Zimbabwe lists lithium and nickel as 'critical minerals', mandates state ownership

The Zimbabwean government recently issued the "Mineral Classification and Declaration," officially categorizing lithium, nickel, cobalt, graphite, and 14 other minerals as "critical minerals." The declaration establishes the principle that the state will exercise a mandatory minimum ownership through a Special Purpose Vehicle (SPV) for related projects and imposes restrictions on the export of raw ores.

This policy framework is seen as an emulation of Indonesia's nickel industry roadmap. The core logic is to prohibit direct export of raw ores, require foreign enterprises to build smelting and processing capacities locally, and allow the state to gain equity in the projects, thereby occupying a more advantageous position in the global critical minerals supply chain.

Although specific implementation details such as the exact equity percentages have not yet been announced, the declaration has already attracted high attention from Chinese lithium mining enterprises in Zimbabwe.

The Framework is Set, Details to be Released

Currently, the declaration remains a framework document, with key terms such as the specific percentages of state ownership and the implementation timetable yet to be clarified by subsequent legislation. However, the policy direction is already clear: the government will directly participate in the equity distribution of critical mineral projects through the SPV mechanism.

Some enterprises have disclosed that projects locally held by the Zimbabwean government have an actual equity stake of 15%. It is understood that the new policy mainly targets new applications for mining rights, with existing mining rights not being affected for now.

This means that enterprises that have completed their layout in Zimbabwe face limited direct impact in the short term, but the equity costs for future expansion or new projects will significantly increase.

Resource Nationalism Heats Up Again

Zimbabwe is an important African country for lithium resources, attracting a large number of Chinese enterprises to invest and develop in recent years. Previously, Zimbabwe had banned the export of unprocessed lithium ores in 2022, and this expansion of its regulatory scope to 14 types of minerals indicates a further systematization of its resource nationalism policies.

From a global perspective, this trend is not an isolated case. Indonesia's model of attracting downstream smelting investments through nickel ore export bans is being emulated by more and more resource countries. For Chinese enterprises that have laid out investments in critical minerals in Zimbabwe, equity dilution and the rise in compliance costs are risk factors that need continuous attention.