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Government to review platinum royalties

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THE government is considering reviewing royalties for platinum miners with high charges for less processed grades of the white metal mineral, Mines and Mineral Development minister Obert Mpofu said yesterday.

Report by Bernard Mpofu

Addressing a Press conference after the first board meeting of the newly appointed Minerals Marketing Council of Zimbabwe (MMCZ) board, Mpofu urged the parastatal to transform and introduce measures, which promote value addition in the mining sector.

“We have become a source of cheap raw material and we need to improve on the value of our minerals, especially our precious minerals,” he said.

“You know platinum, we are moving very seriously on that sector.
“We are currently looking at having some royalties in a graded manner where if it is semi-processed to concentrate level it will attract a certain rate of royalties.

“If it is upgraded it will attract a certain level of royalties and when it is refined it will attract less royalties.

“We want to have a refinery in this country within two years.”
Zimbabwe has the second largest platinum reserves in the world after South Africa and government has raised concerns over the level of contribution made by the miners of the white metals towards fiscus.

Currently, platinum is exported to South Africa in raw form.
Platinum accounts for the bulk of export earnings followed by gold.
“In addition MMCZ is assigned to eliminate mineral leakages either physical or through paper manipulation,” Mpofu said.

“I would like the corporation to revisit all agreements that pertain to the marketing and exporting of minerals.

“It has come to my attention that some marketing agreements between MMCZ and some companies in the platinum sector concluded several years ago may need revisiting to reflect our national aspirations.”

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