Upon whom is the Zakat due when ore dust is sold?
Chapter on Zakat on Gold and Silver
Al-Mughni
Book of Zakat
Primary text
Zakat is due upon the seller because the obligation for Zakat attached to the metal ore itself, or its value if it is not a type of currency. This situation is analogous to selling livestock that has completed its Zakat year, or selling crops or fruit after the appearance of their suitability for harvest. This ruling is supported by the incident involving Abu Al-Harith Al-Muzani who bought ore dust for one hundred sheep and subsequently extracted ore worth one thousand sheep. When Ali ibn Abi Talib ruled on the matter, he determined the ruling based on the extraction of the mineral, implying Zakat pertains to the mineral, not the purchase price.
Supporting text
Ali ibn Abi Talib initially stated that the Khums (one-fifth due on unearthed treasure/minerals) was due upon the buyer (Abu Al-Harith) because he was the one who extracted the mineral, but upon further clarification that the transaction was for ore dust, the ruling shifted towards Zakat being due on the seller based on the value of the commodity in his possession, similar to livestock or produce sold after the due time for Zakat has passed.