Govt bans unrefined gold exports

Tinashe Makichi Business Reporter
Exports of unprocessed platinum and diamonds will from January 1, 2014 attract a “heavy” tax as part of Government measures to prod mining houses into beneficiating minerals and metals locally. Finance Minister Patrick Chinamasa yesterday said in addition to this, Government had banned exports of unrefined gold.

Fidelity Printers and Refinery resumed operations on Tuesday, after stopping its mills in 2007 due to low output from miners, and it will now be the sole buyer of gold.

In his 2014 National Budget statement in Harare, Minister Chinamasa said Government had already pronounced its intention to compel platinum producers to beneficiate the metal locally within two years beginning this year.

Zimbabwe is increasingly looking to the mining sector to drive economic growth and development.
Minister Chinamasa yesterday also said several companies had been licensed to beneficiate rough diamonds in Zimbabwe.

“The contribution of the mining sector to the fiscus is limited, mainly due to export of un-beneficiated mineral resources.
“Government has already announced the intention to penalise export of unprocessed minerals where there is potential for beneficiation.

“We are going to put heavy export tax on exported unprocessed platinum, as the country seeks to make sure it benefits from its resources with added value,” he said.

Mining industry stakeholders say they are studying the feasibility of building a platinum and base-metal refining complex in Zimbabwe, which may cost US$3 billion.

Government introduced a 15 percent levy on the value of gross export proceeds of chrome ore in 2010.
Since then, Government has gone further to induce local beneficiation of the mineral by banning exports of chrome ore.

Last month, Mines and Mining Development Walter Chidhakwa urged platinum miners to bolster their efforts towards local beneficiation and value addition.

Minister Chidhakwa said platinum producers operated by South Africa-based Anglo-American Platinum, Impala Platinum and Aquarius Platinum, argued they were yet to reach the minimum production threshold of 500 000 ounces justifying establishment of a refinery.

The affiliates of the three companies produced around 347 000 ounces last year and are expected to produce around 400 000 ounces in 2013.