• Mining firms ask for postponement of 5% tax on lithium concentrate exports

• Industry wants tax applied only after processing plants start by 2027

• Sinomine pledges $500 million for local lithium refinery

Mining companies in Zimbabwe are urging the government to suspend a planned 5% tax on lithium concentrate exports, arguing it should only take effect once local processing plants become operational by 2027.

Zimbabwe, Africa’s top lithium producer, is working to build a domestic value chain for the mineral. The 2024 national budget introduced the export levy to incentivize local production of lithium derivatives like lithium sulfate and lithium carbonate.

The proposed tax has raised concerns within the industry. Firms contend that taxing unprocessed lithium exports before processing infrastructure is in place could undermine investment. According to Bloomberg, insiders suggest that enforcement should wait until refineries are built.

Discussions were reportedly held on May 19 between the Chamber of Mines and the Ministry of Finance, though no formal decision has been announced.

Reuters reports that four major lithium miners in Zimbabwe submitted plans in 2024 to install concentrate processing plants. Sinomine Resources, a Chinese company, committed in September to invest $500 million over three to five years in a lithium refinery.