Story by Stanley James, Business Editor
Zimbabwe’s mining industry says it is ready to comply with new regulations on mineral royalty remittances as government operationalises payment modalities.
Under the new law, mineral royalties will be paid partially in cash as well as the commodity produced.
The cash will be paid to the Zimbabwe Revenue Authority while the physical commodity or mineral will be surrendered to the Reserve Bank of Zimbabwe (RBZ) which will keep it as a reserve.
Payment is in kind for gold, diamonds, lithium, platinum and minerals deemed to be a component of reserves maintained by the central bank against local and global obligations.
Miners are ready to comply with the law.
Chamber of Mines chief executive officer Dr Isaac Kwesu said, “The commitment by the mining sector to comply with the new law is there and we are just awaiting fine-tuning of the arrangement by the government.”
Royalties which are a tax on volumes of minerals produced and are due to the owner of mineral rights will sustain wealth for the economy.
“The physical form is a valuable element because it will enable the economy to have adequate stocks of reserves that can maintain the stability of a currency or even anchor overall economic production,” said Dr Matthew Nyashanu, chairman of the Parliamentary Portfolio Committee on Budget, Finance and Economic Development.
The government says it is finalising the payment modalities.
Mines and Mining Development Deputy Minister, Honourable Polite Kambamura noted, “The entire structure is in its final form and we are doing our best to ensure that the new law is fully implemented.”
The desire to hold royalties in minerals is also expected to result in commodities anchoring economic growth.