Home » Business » Govt Tightens Screws on Mineral Exports

Government will soon direct the Zimbabwe Revenue Authority to open a bank account dedicated for mineral export deposits only after realising the sector was making little contribution to the fiscus.

Government expected mineral exports to account for much of its revenue, but the sector has not been contributing much to Treasury because of presumably lax minerals laws and other unforeseen reasons.

Finance and Economic Development Minister Patrick Chinamasa, told The Herald on Thursday that although Zimbabwe was an active stakeholder in mineral exportation, little was reaching Government coffers.

As such, Minister Chinamasa said a dedicated bank account for mining proceeds would improve efficiency and accountability in the collection of revenue.

“We want Zimra to open a dedicated account for revenue from the mining sector,” he said.

“We believe that there is something wrong with our mining tax regime because very little is coming to Treasury.”

Although he did not divulge what Government had realised from mineral exports in the recent years, Minister Chinamasa said the figures were little, conflicting and disappointing.

“We had a workshop on (last) Monday to interrogate our tax regime,” he said.

“We want to establish why we are having conflicting figures. Remember at the moment we are only exporting minerals.”

This move comes at a time when Government is also tightening screws on mining operations especially in the diamond sector to improve revenue inflows.

In the diamond sector, Government announced that only one or two companies mining in Marange will be left to mine the gems after they failed to properly account for revenue realised from their operations. There are six diamond miners in Chiadzwa down from seven namely Anjin Investments, Diamond Mining Company, Jinan, Kusena, Marange Resources and Mbada Diamonds.

Mines and Mining Development Minister Walter Chidakwa, in April this year, announced the withdrawal of the mining licence for Gye Nyame Resources due to non-performance.

The firms have not been forthcoming with regards to honouring their obligations to the Marange-Zimunya Community Share Ownership Trust.

After consolidation of operations, the remaining one or two firms will operate as joint ventures with Government. Although it is not clear yet as to which companies would remain, Government is so determined to consolidate mining operations in Chiadzwa with a view to improve revenue inflows.

Minister Chidhakwa, last week, told The Herald that Government was still waiting for Anjin chairman, Mr Jaing Qinde, who is based in Beijing to come and conclude the discussions.

“We have not yet consolidated operations in Chiadzwa,” he said.

“The Anjin chairman is yet to come. He informed us that his programme is tight so we are still waiting.”

Minister Chidhakwa said the Anjin chairman did not indicate as to when he would be able to visit Zimbabwe.

Source : The Herald

Archives