Zimbabwe Lithium Miners Urge Delay of Export Tax Until Refining Plants Are Operational

Lithium producers in Zimbabwe are calling on the government to postpone a proposed 5% export tax on lithium concentrate until domestic refining facilities are fully operational.

The Zimbabwe Lithium Exporters (ZLE), an industry body that includes major players like Chengxin Lithium Group, has formally requested the deferral from the Ministries of Mines and Finance.

The group is asking for a two-and-a-half-year grace period, allowing time for the construction and commissioning of plants that will produce higher-value lithium sulfate, expected to be completed by 2027.

Zimbabwe has rapidly become a key supplier of lithium concentrate to Chinese refineries, following multi-billion-dollar investments by companies such as Chengxin, Zhejiang Huayou Cobalt Co., and Sinomine Resource Group.

In 2024, the country accounted for approximately 14% of China’s lithium imports, according to data from CRU Group.

The proposed export levy is part of the government’s strategy to encourage in-country beneficiation and value addition.

However, ZLE argues that enforcing the tax before local refining capacity exists will undermine current operations and investment momentum.

The association also raised concerns about the method used to calculate royalty payments, stating that the government bases them on the market price of lithium carbonate — a more refined product — rather than on the lower-value concentrate currently produced in Zimbabwe.

The Chamber of Mines, which represents the broader mining industry, met with the Ministry of Finance on May 19 to discuss these issues.

While a spokesperson confirmed the meeting, they declined to comment on the progress of negotiations.

Officials from the relevant ministries have not yet responded to requests for comment.