Zimbabwe gold mines face closure

via Bulawayo24 NEWS | Zimbabwe gold mines face closure 14 January 2014

The punitive royalty charges leveled against mining companies is likely to result in the closure of more than 75 percent of gold minesin the country in the next three months, the Zimbabwe Chambers of Mines has said.

Addressing the Parliamentary portfolio committee on finance and economic development today, Chamber of Mines chairman for Gold producers committee Mr Ian Saunders said there was urgent need for Government to review policy on royalties and taxation of mining companies to allow them to.

“In our view there is no policy thrust to fundamentally drive primary exploration, development and growth in the industry.

“There are serious viability issues in the gold industry and our assessment is that, within 90 days, 75 percent of the gold mines in this county will be shut unless there are policy changes. In short, royalties are too high,” he said.