‘Rampant looting in army lithium project unearthed... military hardware producer directed to halt exports’

THE government has directed an arms manufacturing company controlled by the Zimbabwe National Army to halt lithium exports after unearthing explosive corruption linking its senior officials to illegal exports. There was outrage over government’s decision to grant the army’s Zimbabwe Defence Industries (ZDI) a special permit giving it exclusive rights to export raw lithium to help it ride out operational challenges. The government extended the permit to ZDI immediately after imposing a blanket ban on lithium exports last year, as it received reports of rampant smuggling of the mineral. The bulk of the lithium was at the time being smuggled to neighbouring South Africa, from where it would find its way to the international markets.

The demand has been underpinned by the growth in electric vehicle assemblies in advanced countries including the United State (US) and China. This week, the Zimbabwe Independent was told by top government sources that some senior ZDI officials had capitalised on the ban to comb through rich lithium mining areas across the country, identifying companies that were willing to “partner” for “exports”. The sources alleged that hefty kickbacks of up to US$20 000 a year were paid to secure deals, which were this week slammed by ZDI chief executive officer Hope Mutize. After finding “partners” the ZDI officials would then coax them into salting away the resource through ZDI.

…Investigations by this newspaper uncovered the illegal scheme, through WhatsApp chats, in which unlicenced producers were being asked to pay up US$20 000. “It’s valid for a year (cost US$20 000) and it covers lithium, copper and scrap metals among others,” one of the WhatsApp messages reads. “Prepare a company profile together with a letter of intent to partner with ZDI to export lithium ore. “Just write two or three lines stating that you are interested in partnering with ZDI in exporting lithium. I will send you the address if you are interested in seeing this through us.” However, Mutize insisted that ZDI did not have the lithium export licence. "We do not have any lithium permit at the moment,” Mutize said. “Whoever is signing contracts on behalf of ZDI is duping people and that is criminal."