Local lithium producers are at loggerheads with the Zimbabwe Revenue Authority (ZIMRA) over the collection of a 5% beneficiation tax on lithium concentrates, prompting the Chamber of Mines to seek government intervention, Mining Zimbabwe can report.
By Ryan Chigoche
The Zimbabwean government has set a clear policy direction to promote local beneficiation of lithium, announcing that from January 2027, the export of lithium concentrate will be banned.
This move is aimed at ensuring that all lithium is processed domestically into higher-value products such as lithium sulfate.
In line with this strategy, the government and Zimbabwe Lithium Exporters (ZLE) had reportedly agreed that the 5% beneficiation tax on unprocessed lithium would only take effect once local processing plants were operational, effectively deferring its collection until 2027.
However, tensions have emerged as ZIMRA is already enforcing the 5% beneficiation tax on lithium concentrate. According to producers, the tax is being applied despite a prior government agreement to defer it for two years to allow the construction of lithium sulfate processing plants, a deferment originally set to run until 1 January 2027.
Producers argue that this premature enforcement undermines ongoing investments in local processing infrastructure and disrupts the sector’s growth trajectory.
The situation highlights the delicate balance between government revenue collection and supporting the development of Zimbabwe’s domestic lithium processing capacity.
It has also prompted urgent engagement between the Chamber of Mines, which represents the country’s lithium producers, and government authorities.
“The Chamber, with the support of the Minister of Mines, is engaging the Minister of Finance on this matter,” said the COMZ in a recent report.
The taxation debate is further complicated by the computation of royalties on lithium exports.
The Chamber, together with the Minister of Mines, has held meetings with the Minister of Finance to resolve concerns over the basis for royalty calculations.
During their deliberations, it was agreed in principle that royalties should be levied on lithium concentrates rather than the more expensive refined lithium carbonate.
The matter has since been referred to a technical team to draft proposed amendments to the law, with the Chamber actively working alongside the Ministry of Finance to finalise the process.
With royalty rates for platinum, lithium, and diamonds being historically deemed high, the Chamber has since submitted recommendations for review during the 2025 Mid-Term Budget Review.
