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Prospect Lithium Zimbabwe (PLZ), part of the resource base of leading Houyao Cobalt, has reported paying US$50 million in taxes to the government, underscoring its role as a major contributor to Zimbabwe’s economic growth, Mining Zimbabwe can report.
By Ryan Chigoche
Beyond tax payments, the company has also created over 1,000 jobs and generated more than US$800 million in foreign exchange since inception, highlighting the broader impact of its operations.
This performance is particularly notable given the severe downturn in the global lithium market, which has seen prices fall by over 90% since late 2022 due to oversupply from China and fluctuating international demand.
While many producers have scaled back operations, delayed projects, or cut costs, PLZ has maintained steady production, demonstrating resilience and commitment to the country’s mining sector.
The company operates a concentrator facility with an annual processing capacity of 4.5 million tonnes of ore, producing 400,000 tonnes of lithium concentrate.
Unlike some miners who export raw ore, PLZ adds value locally by processing lithium concentrate on-site. Even amid a severe slump in global lithium prices, PLZ has continued operations, maintaining its fiscal contributions and supporting thousands of jobs.
Unlike some miners who export raw ore, PLZ adds value locally, ensuring that part of its economic contribution remains within Zimbabwe.
“I think you’ve heard that some companies have scaled down because of the global lithium price decline. But we’ve managed to maintain stable operations despite the 90% global lithium price decline for the past two years. And those are our contributions to the economy. We’ve paid 50 million in taxes. We have created over 1,000 jobs and we’ve generated over 800 million in foreign exchange since inception,” said Patience Chizodza, PLZ Communications Manager.
Looking ahead, PLZ is pursuing lithium sulphate value addition projects, which are expected to generate US$200 million in foreign exchange annually.
“We have adopted advanced technology for the plant and we expect to generate 200 million foreign exchange annually,” Chizodza added.
Local lithium miners are often criticised because much of the financial benefit flows to their home countries, and with limited value addition, export earnings remain relatively low.
Yet, tax contributions, royalties, and levies provide a tangible way these companies support the local economy, funding public services, infrastructure, and broader national development.
Houyao Cobalt Group and Its Operations in Zimbabwe through PLZ
Houyao Cobalt focuses on producing battery precursor materials and recycling used batteries rather than manufacturing finished products.
The group operates across Africa, Southeast Asia, and Europe, leveraging technical expertise and financial strength to ensure resource security.
Globally, Houyao Cobalt has strategic partnerships in the electric vehicle and battery sectors, including collaborations with Ford for EV batteries and downstream recycling projects with BMW, Mercedes-Benz, and LG Chem in Indonesia.
These partnerships underscore the group’s commitment to integrating advanced technologies and sustainable practices.
In Zimbabwe, Houyao Cobalt has invested heavily through PLZ, including the lithium sulphate and lithium concentrate project and a new ATZ plant.
The total acquisition cost for PLZ was $422 million, with an additional $300 million invested to establish the concentrator facility. This concentrator enables the primary processing of lithium ore into concentrate, moving beyond exporting raw ore.
The PLZ concentrator processes 4.5 million tonnes of ore annually, producing approximately 400,000 tonnes of lithium concentrate, cementing PLZ’s role as a resilient and impactful player in Zimbabwe’s lithium sector.
