Zim platinum miners plead for tax deferment amid p...

Zim platinum miners plead for tax deferment amid processing plant development

Zim Now Writer

Zimbabwe’s platinum miners have pleaded with government to defer its planned 5% tax on concentrates, pending the completion of smelters and a refinery.

This comes as government is introducing the levy on shipment of platinum group metals concentrates to fund the development of processing plants in the country, which holds the world’s third-largest known reserves of platinum.

According to a Chamber of Mines of Zimbabwe proposal to the Finance Ministry before the National Budget presentation later this month, the platinum miners want government to defer the tax until 2025.

Government announced the tax in 2020, giving miners two years to prepare before later deferring it until January 2024.

The Chamber added that Impala Platinum Holdings’ Zimplats unit is on track to refurbish its base metal refinery and other smelters by 2025.

“To this end, we are appealing for further deferment of export tax on PGMs concentrates to align with Zimplats timelines for completion of their beneficiation projects,” it said.

Zimplats estimates that it will spend US$1.8 billion expanding mining and processing, including rehabilitating an old base-metals refinery built by BHP Group years back.

The Chamber also appealed for a royalty of around 3%, arguing that an increase in the royalty on PGMs to 7% from a previous 2.5%, was impacting the viability of mining projects, especially after a decline in p

The Chamber prayed for a lower royalty that could be adjusted with prices.

“We appeal for a royalty of around 3%,” the Chamber said. “The royalty can be reviewed in line with movements in platinum prices up to a maximum of 5%.”