Zimbabwe’s President Emmerson Mnangagwa said a new policy which compels miners to pay half of their royalties in commodities and in cash will start from this month as the country attempts to build mineral reserves for the first time.
The southern African nation will hold reserves of gold, diamond, platinum and lithium, Mnangagwa said in his weekly column published in the Sunday Mail newspaper.
“Starting this October, government now requires that part of these royalties come as actual refined mining product in respect of each of the four minerals,” he wrote in the state-owned paper.
Mining companies that operate in Zimbabwe include subsidiaries of Impala Platinum Ltd., Anglo American Platinum Ltd. and Sibanye Gold Ltd. Zimbabwe has the world’s third-largest reserves of platinum, and also mines nickel, chrome, lithium and coal.
The decision to ask miners to pay in commodity and cash will assist the government to build physical reserves of precious and strategic minerals and also enable the collection of cash revenue for day-to-day running of state affairs, Mnangagwa said. The reserves may also be used to securitize borrowings by government.
The central bank will be the custodian of the mineral reserves, which Mnangagwa said will receive only processed final products instead of stockpiling ore.
© 2022 Bloomberg L.P.
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.
Denial of responsibility! NewsBit.us is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.
