African lithium company, Prospect Resources has announced the Ministry of Finance and Economic Development of Zimbabwe (MFED) has advised that, in regards to the company’s Arcadia Lithium Project:
“The development of beneficiation facilities requires time for feasibility studies, mobilisation of resources and construction. In this regard, The Zimbabwean Treasury has approved the exemption from the export tax of un-beneficiated lithium originating from a new mine for a period of five years from the date of commencement of mining operations.”
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Prospect Resource’s MD, Sam Hosack, says:
“This is further confirmation that the Government of Zimbabwe is supportive of Arcadia and is focused on attracting foreign investment into the country.
“This incentive will materially lift Arcadia’s project economics and will accelerate payback of project finance.
“Our previously announced DFS and updates have all applied a 5% tax on un-beneficiated lithium to products sold. Removing the 5% tax for the first 5 years of production will reduce operating costs per tonne, increase profitability and lift the projects Net Present Value.”