By a Correspondent
A Zimbabwean lithium company has been forced to shut down operations amid accusations that a Chinese investor and former senior executive siphoned more than US$3.65 million meant for the firm’s operations.
Chinese national Li Shigang (58) appeared before Harare magistrate Jesse Kufa after his arrest on July 11. He faces a charge of theft of trust property under Zimbabwe’s Criminal Law (Codification and Reform) Act, with prosecutors also citing an alternative charge under the Money Laundering and Proceeds of Crime Act.
Li has not yet entered a plea. He remains in custody pending the determination of his bail application. The allegations have not been tested in court, and he is presumed innocent until proven guilty.
According to prosecutors, Li joined San Ding Lithium Private Limited in 2022 as chief finance officer and commercial manager, a position that gave him authority over the company’s finances, including the collection and disbursement of funds, commercial settlements and payment approvals.
Court papers state that Li invested US$630,000 in the company on October 12, 2022, before being granted access to its financial systems.
The State alleges that Li and another suspect, Zhu Guozhonga, diverted approximately US$3.65 million intended for company operations by using fraudulent invoices and receipts to conceal the transactions.
Prosecutors say the alleged diversion of funds crippled San Ding Lithium’s operations, forcing the company to shut down.
The pair is also accused of selling two company-owned Toyota Hilux double-cab vehicles and allegedly pocketing the proceeds.
Police estimate the company’s total loss at about US$3.65 million, with none of the money recovered to date.
Missing financial records
The State further alleges that Li and Zhu resigned from the company in January 2024 without completing a formal handover.
They allegedly failed to surrender critical financial records, accounting books and reconciliation reports.
Court documents claim company director Chen Dehua and employee Chen Xingmei intercepted Li while he was allegedly attempting to remove financial records from the company’s premises.
Prosecutors say Chen spent the next two years trying to recover the missing records and trace the funds, but the accused allegedly failed to cooperate or account for the money.
Spotlight on Zimbabwe’s lithium industry
The case has emerged as Chinese investment in Zimbabwe’s fast-growing lithium sector continues to expand.
San Ding Lithium is a Zimbabwean lithium mining and processing company backed largely by Chinese investors. The company extracts and processes lithium ore used in batteries for electric vehicles and electronic devices.
Zimbabwe has attracted more than US$2 billion in Chinese investment into its lithium industry since 2021, with major investors including Zhejiang Huayou Cobalt, Sinomine Resource Group, Chengxin Lithium Group, Yahua Group and Tsingshan Holding Group.
Africa’s largest lithium producer exported about 1.13 million tonnes of lithium-bearing spodumene concentrate to China in 2025.
The government is also pushing mining companies to invest in local mineral processing instead of exporting raw ore, saying the strategy will create jobs, boost industrialisation and enable Zimbabwe to retain more value from its vast lithium resources.
