Government offers lower taxes to mining investors

via Government offers lower taxes to mining investors | The Source February 28, 2014

Finance and Economic Development Minister, Patrick Chinamasa says government would offer incentives such as lower taxes or royalties to companies willing to add value to local minerals.

“Let us sit down and agree. The lower the taxes, the better for the industry,” Chinamasa said, addressing a two-day beneficiation conference in the resort town.

“We want to make sure we are benefiting from the depleting asset. We are aware that we don’t have to kill the goose that lays the golden egg, but the goose must also not take the egg.”

Zimbabwe government wants major mining companies to build refineries in the country to add value to local minerals and generate more income.  It has given foreign platinum miners two years to build one or lose their licences, but has indicated that it would be willing to let them retain majority shares in their local units if they do, in spite of a law compelling them to sell at least 51 percent shares to local blacks.

“For iron ore and nickel we are encouraging investment in steel plants. With respect to coal mining companies, we will give incentives to those who put up thermal plants,” Chinamasa said.

“In diamond mining, we have done a lot of work as we move towards reducing the number of players from the current seven to a manageable number to ensure accountability. We want to know the amount of diamonds produced, prices and clients.”

He said chrome exports remain banned.