Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
The government of Zimbabwe said the new mining licence fees gazetted in January will not be reversed despite calls by the mining industry to redecue those taxes.
AllAfrica reports the new fees for the mining sector range between U$3 000 and US$5 million.
“Since we increased the fees we have so far collected US$10 million because now we have serious miners who are mining than the scenario we had before, where people would hoard mining claims for speculative purposes,” Mines and Mining Development Minister Obert Mpofu told the Parliamentary Portfolio Committee on Mines and Energy yesterday.
In the diamond industry the fees could be paid by money from one carat when cut and well polished, said the minister:
The government has already told Zimplats to release some of the platinum claims they will not exploit anytime soon. We have told them that they will have to release the land on terms given by government.
Diamond cutter and Highfield East legislator, Pearson Mungofa (MDC-T) said diamond miners are giving poor quality rough rocks to local cutters and exporting the best ones.
Minister Mpofu said he had heard such complaints and that the Minerals Marketing Corporation of Zimbabwe and the Zimbabwe Mining Development Corporation are taking measures to ensure local companies are given good quality diamonds.
