Only companies with approved beneficiation plans to get Lithium licences

Harare (New Ziana) – The government will only grant Lithium mining licences to companies with approved beneficiation plans, Finance, Economic Development and Investment Promotion Professor Mthuli Ncube has said.

He said this while presenting the nearly $60 trillion 2024 National Budget in Parliament on Thursday.

“Substantial mineral revenues can be generated from beneficiation of key minerals,” he said.

“With a significant resource endowment of Platinum Group of Metals, gold, lithium, and diamonds, economic transformation and development can be anchored on beneficiation. Within this context, any lithium value addition process that does not result in the production of lithium carbonate is not regarded as beneficiation, hence, is liable to an export tax. Lithium producing companies should submit their beneficiation plans no later than 31 March 2024.”

As a token of remembrance for the mountains that nature offered, mining companies should provide basic services that include water, health care, electricity and sanitation, among others, he said, adding that the development of mines present an opportunity to improve conditions for local communities.

Ncube proposed to introduce a 1 percent levy on gross proceeds of lithium, black granite and other cut or uncut dimensional stones and quarry stones while all documents or agreements for the transfer or disposal or lease of mineral rights are to be lodged with the State for review and approval before conclusion of the transaction.

“In addition, I propose that no transfer of mining rights shall be approved without payment of capital gains tax and stamp duty or any other tax due on the value of the transaction,” he said.

“Failure to abide by this condition shall render the disposal or lease of mining rights null and void. In view of the recent developments where mining rights are disposed of privately outside the country and at astronomic prices, I propose that revenue derived there from be shared equally with the State. Furthermore, in order to enable Government to track the movement of mining rights for tax purposes, I, propose that a register of mining rights with a record of applications, grants, variations, dealings, assignments, transfers, suspensions and cancellations of rights be maintained and accessible to the Zimbabwe Revenue Authority.”

All agreements for the transfer or disposal or lease of mining rights be lodged with the State and reviewed and approved before they are implemented, he said.

New Ziana