Zim Now Writer
Mining royalties will be paid in three distinct components of product, local currency and forex in the new financial year, Finance Minister Mthuli Ncube announced in his 2023 budget presentation.
50 % will be in minerals as announced in the new policy that took effect in October, 40% in local currency and 10% in foreign-currency cash.
“Although traditionally, royalties are remitted in cash, it is pertinent that the current formulae be reviewed in line with government policy to preserve value and mitigate against revenue loss,” said Ncube.
Zimbabwe is targeting a US$12 billion mining industry target.
A recent report by Zimbabwe’s Chamber of Mines, which represents the country’s major mining firms, says the sector will experience a slower 7% growth next year, from a projected 8% this year.
The report cites rising operational costs and electricity shortages as key challenges to be addressed.
The country is battling chronic power shortages exacerbated by rising demand as new mines are opened and industry capacity utilisation goes up.
An almost complete upgrade at Hwange Powers Station will add 600MW to the grid with another 300MW in the pipeline with another upgrade next year.
Above normal rainfalls expected in the region could see Kariba Dam levels rising to ensure full output from that station.
Combined output levels should reduce the 900MW shortfall considerably.
Ncube's 2023 budget has more than doubled infrastructure development expenditure with focus on mining as one of the key components to jump start the economy.
Charles ManyuchiGilbert Munetsi - Zim Now WriterFormer WBC Silver and reigning WBF world heavyweight champion Charles Manyuchi has officially confirmed his return to the boxing ring, ending a brief ..
ZimbabweMunyaradzi Mashiri- Court CorrespondentA 22-year-old Kuwadzana man has been fined US$150 after assaulting his ex-girlfriend for refusing to accept his Valentine’s Day gift.Braindon Ncube appeared be..
ZimbabweOscar J Jeke- Zim Now ReporterA global shift in foreign aid policies has ignited debate as major donor nations reduce financial commitments in favour of domestic priorities.The United States’ suspen..
Zimbabwe
Leave Comments