Zimbabwe lithium miners propose new royalty models to drive local processing

Mining companies in Zimbabwe are addressing the government’s mandate to transition from exporting lithium concentrates to producing higher-value products, such as lithium sulphate, by January 2027.

Kamativi Mining Company (KMC) is investing US$200 million in a lithium sulphate plant, with production expected to begin in July 2027. However, KMC officials cautioned that the ability to perform value addition depends on the scale and economics of individual mines, noting that not every operator has the resources to justify such processing.

To encourage this industrial shift, Prospect Lithium Zimbabwe (PLZ) has proposed a graduated royalty system to the Parliamentary Portfolio Committee on Mines and Mining Development. The proposal suggests replacing the current flat 7% royalty rate with a tiered structure: 7% for raw ore and concentrates, 5% for lithium sulphate, and 3% for higher-value chemical salts used in battery manufacturing. PLZ argues that lower royalties for processed goods would provide companies with more capital to reinvest in domestic refining capacity and infrastructure.