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Mimosa seeks clarity on tax

Business
MIMOSA is engaging authorities together with the Chamber of Mines to have the 15% export levy on un-beneficiated platinum group metals (PGMs) deferred, as it is impacting on the business, its parent company Aquarius Platinum has said.

MIMOSA is engaging authorities together with the Chamber of Mines to have the 15% export levy on un-beneficiated platinum group metals (PGMs) deferred, as it is impacting on the business, its parent company Aquarius Platinum has said.

BY VICTORIA MTOMBA

Mimosa-Mine

In his 2015 National Budget, Finance minister Patrick Chinamasa proposed the deferment of the 15% export levy on un-beneficiated platinum to January 2017. But the Finance Act of 2014, which gives legal effect to the budget proposals did not include the tax deferment on un-beneficiated PGMs.

“The company continues to engage the authorities in consultation with the Chamber of Mines to have the levy deferred. In the absence of the formal deferment in law and having considered the above, the directors believe it is prudent to provide for the impact of this levy. The group said an attributable $4,5 million has been accrued for the financial year ended June 2015,” Aquarius Platinum said.

It said Mimosa, together with the other platinum producers in Zimbabwe, is currently in the process of assessing the viability of a number of in-country smelting and beneficiation alternatives.

“The outcome of these assessments will be communicated to all relevant stakeholders in due course,” the group said.

During the year ended June 30, 2015, Aquarius recorded an increase of 5% in group attributable production to 349 426 PGM ounces. On per PGM ounce basis, dollar unit costs in South Africa decreased by 9% to $803 but increased by 1% in rand terms while in Zimbabwe the cash cost per PGM ounce was $802.

“Maintaining operating unit cost increases well within inflationary targets will continue to be a point of focus particularly in the ongoing low metal price environment,” the company said.