Zimbabwe to end tax relief for mining companies in bid to boost mineral processing

Zimbabwe will stop offering tax relief for mining companies from January 2025 to encourage them to establish mineral processing operations in the country.

Holders of special mining licenses are currently subject to a 15% corporate income tax rate.

"With effect from Jan. 1, 2025, [the] government will not grant any further reprieve from the tax, in order to compel mining houses to expedite completion of beneficiation plants," Zimbabwe's Treasury Ministry said in a statement on X.

"[The] government has already introduced [a] 5% beneficiation tax on the export of unbeneficiated platinum, with a view to compel mining houses to invest in the requisite plants," the ministry said. "In addition, [the] government removed customs duty on the importation of the equipment required in the setting up of beneficiation plants."

The government said the country's platinum industry has already made "significant progress," with Zimplats, Zimbabwe's leading mining company, refurbishing a mothballed base metal refinery plant at an estimated cost of $200 million.

The plant is expected to restart operations next year and will separate minerals such as copper, nickel and chrome from platinum concentrate.

Zimbabwe has significant mineral reserves and relies heavily on exports of platinum group metals along with other minerals such as gold and chrome.

The country is also the world's fifth-largest lithium producer.

Platts, part of S&P Global Commodity Insights, assessed CIF China clean copper concentrate treatment charge and refining charges respectively at $9.10/mt and 0.91 cent/lb on Nov. 12, increasing 20 cents/mt and 0.02 cent/lb from Nov. 11.