Zimbabwe miners seek deferral of proposed export tax
The Chamber of Mines of Zimbabwe has submitted a proposal to the government, requesting a deferral of the planned 5% export tax on platinum group metals’ concentrates.
The mines cited need for more time until 2025, to complete smelters and refurbish a refinery. The tax was initially announced in 2020, with a two-year preparation period given to miners. However, the implementation was later deferred to January 2024.
Zimplats
The government aims to encourage the development of processing facilities within Zimbabwe by imposing the export tax on platinum group metals’ concentrates. Zimplats, a unit of Impala Platinum Holdings Ltd., is reportedly on track to refurbish its base metal refinery and other smelters by 2025. The Chamber of Mines is appealing for a deferment of the export tax to align with Zimplats’ project timelines.
Zimplats plans to invest $1.8 billion in expanding mining and processing activities, including the rehabilitation of an old base-metals refinery previously built by BHP Group. The chamber also expressed concerns about the increase in the royalty on platinum group metals (PGMs) from 2.5% to 7%.
They argue that this increase, coupled with a decline in PGM prices, is affecting the viability of projects. The chamber is appealing for a lower royalty rate of around 3%, which could be adjusted based on platinum prices, up to a maximum of 5%. Zimbabwe’s Platinum Reserves: Zimbabwe is noted as holding the world’s third-largest known reserves of platinum.
