adminThe Government increased the mining fees as part of efforts to discourage speculative holding of claims in a move that players in the sector widely criticised.
The fees range between $3 000 and $5 million.
Ministry officials told the Parliamentary Portfolio Committee on Public Accounts that the earnings were surging in line with increased activity in the sector.
“Out of that money, we retain 25 percent,” Ministry chief accountant Mr Mateo Mateo told the committee.
In terms of the standing arrangement between it and Treasury, the Ministry retains 25 percent of revenue collected to fund its own operations.
Permanent Secretary Mr Prince Mupazviriho defended the high licence fees saying the increase was not a revenue generating initiative.
“We increased those fees to make sure that mining companies increase their production,” he said.
“The fees are a fixed cost. If you are not productive on that land then you are forced to relinquish it,” he added.
The Government argues that most companies holding on to mining claims were using them to push their asset value up while they were not productive on the ground.
To curb the practice, the Government now requires miners to pay between $500 and $3 000 per hectare of land held as a claim by any individual or company.
The Government also introduced the “use it or lose it” principle to encourage productivity in the sector. — New Ziana
Online Reporter