Tawanda Musarurwa in NYANGA
THE Chamber of Mines of Zimbabwe is engaging the Government on a predictable de-dollarisation roadmap that allows the mining industry to transition towards greater use of the local currency without disrupting operations.
Chamber of Mines chief executive officer, Isaac Kwesu, said the industry wanted a carefully managed transition that takes account of the sector’s operational and foreign currency requirements.
“We are also engaging the Government for an optimal de-dollarisation roadmap, whose transition is non-disruptive to the mining operations,” said Mr Kwesu.
He made the remarks during the Association of Mine Managers of Zimbabwe’s (AMMZ) 54th annual conference and AGM in Nyanga, where he outlined the Chamber’s engagements with Government and the Reserve Bank of Zimbabwe on the mining sector’s operating environment.
Mr Kwesu said the Chamber’s engagement with the central bank had helped maintain the mining industry’s foreign currency retention threshold at 70 percent over the past two years.
“Our engagement with the Reserve Bank has resulted in foreign exchange retention being maintained at 70 percent for the past two years, a threshold most of our mining members deem adequate to meet their requirements,” he said.
“We are equally engaged for those who do not require more than what they retain to be accommodated through special arrangements with their banks.”
The 70 percent retention threshold allows mining companies to retain a portion of their foreign currency earnings to meet operational requirements, including payments for imported equipment, machinery and other essential inputs.
Mr Kwesu said the Chamber was also engaging authorities to ensure that companies whose foreign currency requirements were lower than their retention allocations could be accommodated through special arrangements with their banks.
The engagements form part of broader efforts by the Chamber to secure a predictable and competitive policy environment for mining, with other areas of discussion including electricity costs, taxation, mining fees and local content requirements.
The mining sector is a major source of foreign currency earnings, making the management of the transition a key consideration for production, investment and the continued viability of mining operations.
