Zimbabwe’s platinum miners have asked the government to delay a planned 5% export tax on concentrates until smelters are completed and a refinery is refurbished.
Producers want the tax to be delayed until 2025, according to a proposal submitted by the Chamber of Mines of Zimbabwe to the Treasury ahead of the presentation of the 2024 budget later this month. After announcing the tax for 2020, the Treasury initially gave miners two years to prepare before later postponing it until January 2024.
The government is introducing the levy on shipments of platinum group metal concentrates to encourage the development of processing facilities in Zimbabwe. Impala Platinum Holdings Ltd’s Zimplats unit is on track to rehabilitate its base metals refinery and other smelters by 2025, the chamber said.
“To this end, we appeal for a further deferral of the export tax on platinum group metals concentrates to align with Zimplats’ timelines for completion of its beneficiation projects,” it said.
Zimplats plans to spend $1,8 billion to expand mining and processing, including the rehabilitation of an old base metal refinery built by BHP Group.
The chamber also said an increase in royalties on platinum group metals to 7% from the previous rate of 2,5% was affecting the viability of projects, especially after a fall in prices. He called for a lower royalty that could be adjusted with prices.
“We are calling for a royalty of around 3%,” the chamber said. “The royalty can be reviewed in line with movements in platinum prices up to a maximum of 5%.”
Zimbabwe has the world’s third largest known platinum reserves.
