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Zimbabwe’s Miners Face Higher Taxes to Fund State-Owned Mineral Exploration

Nov 2, 2015 6:46 AM   By Rapaport News
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RAPAPORT... Zimbabwe’s miners will be on the hook to pay a higher rate of tax to finance mineral exploration in the country following the setting up of state exploration company, according to a fin24 report.

“We want to transform the MMCZ [Minerals Marketing Corporation of Zimbabwe] into an exploration company,” fin24 cited Zimbabwe’s mines and mining development minister Walter Chidakwa as saying in an interview.

“There is no new levy for exploration but the small fee that companies were paying to the MMCZ will be increased to about 1 percent so that the money can be used to fund exploration activities.”

The move comes at a time when exploration in the nation is declining and miners facing uncertainty, the online report said.

Zimbabwe has vast mineral wealth, including diamonds, platinum and gold, but the country has failed to transform its abundant natural resources into prosperity for 13 million citizens, fin24 said, citing government officials.

It has attracted mining investors such as South Africa’s Impala Platinum and Canadian gold explorer Caledonia Mining Corporation, it said.

Zimbabwe-focused miners such as Aquarius Platinum were likely to focus on cost containment and loss avoidance, Bruce Williamson, the Imara Africa Resources fund manager, told fin24 in an e-mail on Wednesday, it said.

“The coming months will remain exceptionally challenging for both Kroondal and Mimosa,” he said. “At both operations, management’s focus will be to prevent losses. So cost cutting will be the name of the game; hopefully retrenchments can be avoided.”
Tags: mining, Rapaport News, tax, Zimbabwe
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