Zimbabwe to uplift its reserve of precious metals, has introduced new policy allowing the state to collect mining royalties partly in the form of minerals. The move comes as the country scrambled to capitalise its significant mineral reserves and a resource boom due to policy uncertainties, currency volatility, power shortage and lack of ancillary industries to support mining.
A government statement issued on 4th Nov in regards to the policy read- “Royalties remitted to the Zimbabwe Revenue Authority in respect of gold and those minerals specified shall be paid on the basis of 50% in kind.”
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Under the new lawsuit, the cash component of the royalties would comprise of 40 percent Zimbabwean Dollars, and 10 percent foreign currencies.
Royalty collection from gold, diamonds, platinum group metals and Lithium was announced in October by President Emmerson Mnangagwa. The South African country collects royalty rates of gold between 5 percent for gold and platinum group metals and 10 percent for diamonds.
Anglo American Platinum, Impala Platinum, Sibanye Still water, Alrosa, Zhejiang Huayou Cobalt and Caledonia Corporation a few companies that operate in Zimbabwe.
India’s mineral royalty rates are the highest in the world. The Indian govt should revise the rates as it has created a neck-to-neck competition in the mining sector. The royalty payments above the auction primea put a heavy burden on the mining companies. The Union Govt should adjust the rates in alignment with the global.
