By: OrePulse

Prospect Lithium Zimbabwe (PLZ), operator of the Arcadia lithium project in Goromonzi, Zimbabwe, said it has paid more than $100 million in Zimbabwean taxes since beginning operations and is asking the government to change how two export charges are treated for tax purposes.

The company, a unit of China's Zhejiang Huayou Cobalt, said Zimbabwe's 10% lithium export tax and 3% export levy cannot currently be deducted when calculating corporate income tax. PLZ said this creates what it called a double-taxation burden, pushing its effective tax rate above 16%.

PLZ said it has asked Zimbabwe's Ministry of Finance to make the export tax and export levy deductible for income tax purposes, arguing the change would improve cash flow and competitiveness for exporters. The company raised the issue during a media tour organized by the state-run Minerals Marketing Corporation of Zimbabwe.

The request comes as Zimbabwe's government has pushed mining companies to process lithium domestically rather than export raw concentrate. PLZ said it was the first company in Zimbabwe to produce lithium sulphate and is now working toward lithium carbonate production.

PLZ said it has invested about $700 million in Zimbabwe, generated more than $305 million in foreign currency earnings, and spent over $5 million on corporate social responsibility programs. The company said it employs more than 1,000 people directly and supports roughly 1,000 indirect jobs. A related Huayou entity, Arcadia Technology Zimbabwe, has invested more than $400 million and was commissioned in 2025, a year ahead of schedule, with a reported processing capacity of 50,000 metric tons a year. PLZ said combined foreign currency earnings from the two companies are projected to exceed $600 million a year starting in 2026.