Govt bans raw lithium exports

By Taurai Mangudhla | Dec. 21, 2022 | 2 Min read

LITHIUM

ZIMBABWE banned exports of raw lithium has with immediate effect in efforts to value-add its minerals and support local production and employment creation.

The ban was effected through Statutory Instrument (SI) 213 of 2022 gazetted yesterday titled Base Minerals Export Control (Unbeneficiated Lithium Bearing Ores) Order, 2022.

Zimbabwe is estimated to hold Africa’s largest lithium reserves and is the fifth largest producer in the world.

“No lithium bearing ores, or un-beneficiated lithium whatsoever, shall be exported from Zimbabwe to another country except under written permit of the minister (Mines) …,” the SI read.

The regulations explain that un-beneficiated lithium means any lithium that has not undergone processing to an extent that would exempt it from payment of export tax.

Exemptions, are, however, given to any party wishing to export samples of lithium bearing ore or un-beneficiated lithium for assaying outside Zimbabwe; or to a miner or exporter of lithium upon production of written proof satisfactory to the minister that there are exceptional circumstances justifying the exportation in question and that the lithium bearing ores or un-beneficiated lithium in question have been valued in terms of the Value Added Tax Act [Chapter 23:12] for purposes of payment of the export tax on un-beneficiated lithium.

“Section 6 of the principal Act provides that any person who contravenes or fails to comply with any order or with the terms and conditions of any permit issued to him, or her under an order shall be guilty of an offence and liable to a fine not exceeding level 9, or twice the value of the base minerals in respect of which the offence is committed, whichever is the greater; or imprisonment for a period not exceeding two years; or to both such fine and such imprisonment,” the SI read.

Meanwhile, government has gazetted a 78, 4% salary hike for the mining industry backdated to July.