The platinum miners in Zimbabwe, a landlocked country in southern Africa, have urged the government to delay its planned 5% export tax on concentrates until 2025.
According to a proposal submitted by the Chamber of Mines of Zimbabwe to the finance ministry of the country, leading Zimbabwe platinum miners have asked the government to delay export tax because Impala Platinum Holdings Zimplats unit is set to refurbish its base metal refinery by 2025.
The Chamber of Mines of Zimbabwe said, “We are appealing for further deferment of export tax on PGMs concentrates to align with Zimplats timelines for completion of their beneficiation projects.”
Platinum miners in Zimbabwe asked the government to delay a 5% tax on concentrates until 2025. The platinum miners want the government to “reconsider the policy and further defer” the tax.
Planned 5% export tax
Zimbabwe announced the planned 5% export tax on platinum in 2020. The government gave miners two years to prepare for the policy. Later on, the government delayed the plan until January 2024. However, miners want the government to delay the plan until 2025.
The government announced the export tax on shipments of platinum group metals’ concentrates to boost the development of processing facilities in Zimbabwe and increase the value of its mineral resources.
Zimplats, the leading mining company in Zimbabwe, has planned to spend $1.8 billion to boost mining and processing, with the aim of encouraging the companies to develop their own processing facilities.
Alex Mhembere, the Chairman of Zimbabwe Platinum Mines (Pvt) Ltd. and Chief Executive Officer & Executive Director at Zimplats Holdings Ltd, told the finance ministry of Zimbabwe to reconsider the decision because prices for the main PGMs — platinum and palladium — have dropped 14% and 38%, respectively, so far this year.
Impala Platinum has already announced plans to cut capital expenditure for some of its projects, including its Zimplats operation in Zimbabwe.
The miners also urged the government in Zimbabwe to decrease the royalty on PGMs because of a decline in prices of the main PGMs. The chamber said, “The royalty can be reviewed in line with movements in platinum prices up to a maximum of 5%.”