Finance Minister Mthuli Ncube ordered mining companies to pay 50% of royalties by physically shipping the goods in a move expected to bolster exchange rate stability.
Handing over the 2023 national budget, Ncube said the measures were enshrined in the statutory instrument 189/2022.
“In order to increase national reserves and thus strengthen the resilience of the economy against external shocks, the government promulgated the statutory instrument 189 of 2022, which obliges gold, lithium, diamond and platinum miners to weld 50% of royalties payable owed to the government through the physical delivery of these goods,” he said.
Ncube said the measures will strengthen the country’s foreign exchange reserves and support the current exchange rate stability by providing support to the national currency.
The provision will be accompanied by a payment of 10% in foreign currency in cash and 40% in local currency.
“Platinum Group Minerals miners currently have no refining facilities, so they sell semi-finished concentrates for further processing.
“Section 302 of the Constitution of Zimbabwe specifies that all government revenues, including royalty revenues, must be deposited in the Consolidated Revenue Fund.
“So I would like to point out that royalties paid in the form of minerals will continue to be accounted for,” he said.
Zimbabwe earned about $5 billion from mineral exports in 2021, as investments by mining entities in recent years have boosted production and put the country firmly on track to meet its $12 billion target for mineral production. ‘mining industry.
The government says mining production has benefited immensely from deliberate efforts to grow one of the country’s economic sectors since the Second Republic, led by President Emmerson Mnangagwa, took power in 2017.