ZASMC calls on Chinamasa to reduce mining royalties


THE Zimbabwe Artisanal and Small Scale for Sustainable Mining Council (ZASMC) has called on Finance minister Patrick Chinamasa to reduce mining royalties in the national budget this month.

Kudzai Kuwaza

ZASMC president Wellington Takavarasha said the steep royalties of 7% discouraged its members from effectively carrying out their operations.

“We have sent our proposals to the Ministry of Finance for the reduction in royalties, pegged at 7%, as people are running away because of this,” said Takavarasha.

He said this was aggravated by a presumptive tax of 2% and, in the case of gold miners, a 6% commission charged by Fidelity Printers. This, in instances, effectively brings the charges government levies on some small scale miners to 15% of earnings. Takavarasha said mining royalties should be reduced to 3%.

The said small scale miners were under-mechanised, with the Mining Industry Loan Fund’s programme, set up to assist small-scale miners to buy mining equipment, managing to secure only 72 compressors countrywide for 30 000 registered small–scale miners.

The ZASMC boss said there was need for government to increase funding to the mining sector as it was the cornerstone of the growth of the country’s economy, adding that the funding small scale miners received from treasury was not commensurate with the contribution the sector made to the country’s fiscus.

ZASMC estimates that artisanal and small-scale miners directly employ about 500 000 Zimbabweans on a full time, seasonal or occasional basis.

Finance minister Chinamasa, who faces the herculean task of reviving the faltering economy, characterised by low industrial capacity utilisation which has dropped from 44,2% in 2012 to 39,6% this year, is expected to introduce remedial measures after extensive consultations with various stakeholders in business.

One thought on “ZASMC calls on Chinamasa to reduce mining royalties”

  1. Timothy Thorton says:

    Minerals must be purchased at their correct price. The amount of money that government loses to the black market is alarming because of that 15%. Miners are wealth creators and must be incentivised to encourage growth. The downstream effects and increased activity from the incentive would creaate a positive gain in the economy. When is someone goingto undesratand this basic premise.

Comments are closed.