Nov 8 (Reuters) – Zimbabwe has passed regulations allowing the state to collect mining royalties partly in the form of minerals, according to a government notice seen by Reuters on Tuesday, as the country seeks to build a reserve of metals precious.
The southern African country has struggled to take advantage of its large mineral reserves and a resource boom due to political uncertainty, lack of ancillary industries to support mining, volatile currencies and power shortages.
Last month, Zimbabwe’s President Emmerson Mnangagwa said his government planned to start collecting half of royalties on gold, diamonds, platinum group metals and lithium in the form of the minerals themselves. even to constitute reserves. The rest would be in cash.
“Royalties remitted to the Zimbabwe Revenue Authority for gold and specified minerals will be paid on the basis of 50% in kind,” the government notice dated November 4 reads.
The cash component of the royalties would be made up of 40% Zimbabwean dollars and 10% foreign currency, according to the notice. Zimbabwe’s royalty rates range from 5% for gold and platinum group metals to 10% for diamonds.
Foreign companies with operations in Zimbabwe include Anglo American Platinum (AMSJ.J)Impala Platinum (IMPJ.J)Sibanye Stillwater (SSWJ.J)Alrosa (ALRS.MM)Zhejiang Huayou Cobalt (603799.SS) and Caledonia Corporation (CALq.L).
The Zimbabwe Chamber of Mines, which represents major mining companies, said it was not concerned about the new royalty policy as it does not equate to an increase in existing royalty rates.
Reporting by Nyasha Chingono, editing by Nelson Banya and Emelia Sithole-Matarise
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