China dominates Zim mining sector
By Abel Karowangoro
A United States of America think tank says America should challenge China’s growing grip on mineral resources in Africa.
Chinese companies have invested over US$4.5 billion in mining, according to United States Institute Of Peace(USIP),overshadowing the US.
In Zimbabwe, Chinese companies dominate the sector with investments over 3bn, making the country arguably the country with the biggest concentration of new projects by China, Zimbabwe’s biggest source of Foreign Direct Investment.
Chinese investments in Africa are equally ballooning and USIP said, China dominates global critical mineral supply chains accounting for 60% of world wide production and 85% of processing capacity
In Zimbabwe, China is constructing one of the world’s largest Lithium plants. Africa has become one-third of the world’s mineral resources.
China-Zim contribution in world’s mining sector
China- Zimbabwe mining projects is growing internationally with the minerals helping to lead to a more prosperous and stable country.
Zimbabwe has high hopes for what the mineral resources can do to China and other countries because of the demand.
China’s backing of Zimbabwe’s mining is going to transform the economy of Zimbabwe, said USIP.
China’s partnership with the African countries will never be overcomed by any other Western countries as it has made tangible strides in Africa’s mining sectors, according to U.S policymakers.
Chinese Mining Companies in Zimbabwe
With the Lithium rush which has seen many investors coming to Zimbabwe to invest. China state-backed companies under Zhejiang Huayou Cobalt have pursued long strategies to secure reliable projects in the country.
Chinese companies have ownership positions in mining companies such as the Prospect Lithium Zimbabwe , Sabi Star Lithium Project and Kamativi Mining Company.
“The Chinese mining and battery companies have invested US$4.5 billion in lithium mines in the past two years and are behind much of Africa’s Lithium projects,”USIP said.
China’s dominance in Zimbabwe’s mining sector is beneficial to the economy as they create employment and constructions of mineral processing infrastructure.
United States of America told to engage Africa
According to USIP, U.S part of its news focus released its Africa strategy emphasizing that the United States will assist African countries to “leverage” their critical mineral resources for economic development.
The U.S engagement seems to be a conflicting issue especially to the counties that China has already engaged.
With the Zimbabwe situation the enagmnet is very difficult because of the sanctions that were imposed by the Western.
Western-backed mining projects especially in minerals like Lithium, China have control over the vital mineral.