THE discovery of new minerals such as lithium and investments in additional capacities are driving growth in the mining sector, Finance, Economic Development, and Investment Promotion Minister Professor Mthuli Ncube has noted.
Addressing parliamentarians in Bulawayo on Wednesday during a pre-budget seminar, Mthuli said the contribution of the mining sector to the economy has been steadily increasing from 11.5 percent of GDP in 2018 to current levels of 13.3 percent.
“Similarly, in 2024 and 2025, growth is projected at 2.3 percent and 5.6 percent, respectively. The growth is driven by increased output across all minerals and the discovery of new minerals, (lithium), as well as investments in additional capacities,” he said.
The lithium sector has emerged as a major recipient of foreign direct investment, with several Chinese-owned mining companies establishing processing facilities in the country.
This influx of investment has played a crucial role in driving the growth of the lithium industry.
Zimbabwe is one of the leading producers of lithium, ranking fifth after Australia, Chile, China, Argentina and Brazil, but with massive latent potential in light of the several projects under development.
The Southern African country has seen massive investments in developing lithium assets over the last few years amid the growing global demand for the precious metal.
The exponential global demand for lithium is being driven by the rising production of electric vehicles — and other electronics — seen as essential for energy transition based on zero carbon emission.
Notably, most of the investments in Zimbabwe’s lithium sector have come from large-scale miners.
According to his presentations, lithium, diamond, coal and iridium output increased significantly by 1 729 percent, 103 percent , 67 percent and 55 percent , respectively, from 2017 relative to the 2023 output.
“While, several minerals recorded decent growths in output during the seven years, with gold, platinum and rhodium of 35 percent, 34 percent and 30 percent, respectively. Chrome and nickel outputs recorded low growth at 8 percent and 7 percent, respectively.”