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Acting Business Editor
GOVERNMENT is planning to introduce a new levy on unprocessed platinum to compel producers of the mineral to set up a refinery in the country in order to promote value addition.
Zimbabwe’s three platinum producers are Zimplats, Mimosa, and Unki.
As part of attempts to promote value addition and beneficiation of mineral commodities, Government gave the existing platinum producers a two-year window beginning 2013 to set up a platinum refinery plant in the country.
Announcing the 2014 national budget last week, Finance and Economic Development Minister Patrick Chinamasa said:
“Government is, however, concerned by the lack of progress to date, which seems to emanate from the non-committal of platinum producers. Government is therefore, reiterating that it will enforce the two-year period window, which ends in 2014, after which exports of raw platinum will not be permitted.
“Meanwhile, Government will introduce some tax disincentives on the export of raw platinum, including other minerals,” he said.
He said in the previous budgets Government emphasised the importance of beneficiation and value addition of Zimbabwe’s minerals.
This, Minister Chinamasa said was meant to diversify industry through forward and backward linkages, derive mineral value and avoid exporting jobs.
“Regrettably, little progress has been made on the identified areas and we continue to allow truck and rail loads of crushed rock ore out of our borders for value addition and job creation overseas,” he said.
Due to the absence of a refinery, the country was losing a lot of jobs and revenue by allowing unprocessed platinum exports.
The Platinum Producers Association of Zimbabwe recently said a feasibility study to construct a platinum refinery that requires at least $2 billion in the country had been completed.
The feasibility study had been undertaken in response to the demand by Government that value be added to high-value minerals prior to their export.
Platinum was a key driver of the mining sector’s 35 percent growth from 2009 to 2011, which resulted in increased pressure from Government for greater local beneficiation.
Meanwhile, the economy is projected to grow by 6,4 percent in 2014 compared to 3,4 percent projected this year.
The positive economic growth trajectory is underpinned by mining and agriculture sectors.
Online Reporter