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.
Concerned about the un-taxed export of byproducts refined from platinum, the Zimbabwean government is considering drafting laws that would force platinum mining companies to set up refineries.
News Day reports that the government is taking action as a way to stem the loss of revenue and jobs to South Africa:
“They should start setting up refineries before we force them to do so,” said (Mines and Mining Development Minister Obert) Mpofu. “If they don’t do it on their own then I will be formulating laws that will stop the exportation of concentrates to South Africa.”
Platinum byproduct minerals for export, such as gold and vanadium, are not taxed by the government.
Zimbabwe recently tried to stop raw chrome from being moved out of the country, mostly by Chinese mining companies, according to News Day.
4 Comments
Nmalila
Having refineries in Zim would ensure a value adding beneficiation stage which would also generate employment, contribute to skills development and reverse the trend of exporting raw materials.
Mark Harder
I can understand the benefit of creating a domestic value-added industry to the platinum export chain. But I don’t see how platinum refineries per se are going to increase revenues from byproducts. By definition, refineries produce byproducts, and these can still be packaged and exported. Wouldn’t it be simpler to tax byproduct exports the way PGM products are taxed?
Reg Liverpool
Uncle Bob will be dead soon and freedom will come back to Zim
FlyboyX
For once I agree with Bob!!!