Zimbabwe lithium exporters seek tax delay until 2027
Miners in Zimbabwe are urging the government to defer an export tax on lithium concentrate until plants that will refine the battery material into higher-value products in the country come online.
The Zimbabwe Lithium Exporters — an industry association representing companies such as Chengxin Lithium Group — is asking for the 5% levy aimed at fostering a domestic refining industry to be delayed for two and a half years, according to a request to the mines and finance ministries.
Zimbabwe has emerged quickly as a significant supplier of lithium concentrate for refineries in China after companies such as Chengxin, Zhejiang Huayou Cobalt and Sinomine Resource Group spent billions of dollars in recent years to develop mines. The southern African nation last year supplied about 14% of China’s lithium imports, according to CRU Group.
The tax on shipments of concentrate — which the government considers unprocessed or “unbeneficiated” — should be shelved until plants capable of manufacturing lithium sulfate “are expected to be completed and commissioned” in 2027, the ZLE said in the document seen by Bloomberg.
The higher-value product will then be shipped to China for further processing into battery-grade material.
The group also complained that Zimbabwe is calculating the companies’ royalty payments using the price of more valuable lithium carbonate rather than what’s produced in the country.
The Chamber of Mines, which represents the wider mining sector, met with the Finance Ministry on May 19 to discuss the proposals. A spokesperson for the Chamber confirmed the consultations but declined to comment on ongoing talks with the authorities.
Representatives for both ministries didn’t respond to questions seeking comment.
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