Zimbabwe To Double Royalty Rate On Platinum Group Metals

Finance minister Mthuli Ncube says 5% rate will also apply to lithium, a mineral that’s drawing investor interest in Zimbabwe Nyasha Ching'ono Harare — Zimbabwe will double the royalty rate it charges mining companies on the platinum group metals (PGMs) they produce to 5% from January 2023 in a bid to increase government revenues, finance minister Mthuli Ncube announced in a budget review presented this week. The country is the third-largest producer of platinum, after SA and Russia, with major miners Anglo American Platinum, Impala Platinum, Tharisa and Sibanye-Stillwater operating there. Presenting a midterm budget in parliament on Thursday, Ncube said government income from the mining industry was low due to what he called “a generous royalty regime on some major minerals”. SA, the world’s leading PGM producer, uses a formula to calculate the royalties it charges mining companies, based on earnings. The royalty rate is capped at 5% for refined minerals and at 7% for unrefined minerals.