Zimbabwean lithium miners have asked the government to defer the imposition of a tax on concentrates until the end of 2026, so they can raise capital to construct processing plants.
The country levies VAT of 5% on lithium concentrates, which have to be beneficiated to a certain level to avoid the tax.
Given depressed lithium prices, miners have appealed for a tax moratorium to give them time to raise funds for processing facilities, according to a position paper.
Zimbabwe announced in June plans to ban the export of lithium concentrates from 2027 to compel mining firms to set up processing operations in the country.
The nation has emerged as a significant supplier of lithium concentrate for refineries in China, after firms like Chengxin Lithium Group and Zhejiang Huayou Cobalt spent billions of dollars to develop mines.
Bikita Minerals, the local unit of Sinomine Resources, and Arcadia Lithium, are both establishing facilities that will process ores into higher-value lithium sulphate, according to the government.
Secretary for Finance George Guvamatanga said the Treasury won’t change its position since Parliament has directed that there should be no further moratorium on the introduction of the tax.
Bloomberg
