BUSINESS REPORTER
The Reserve Bank of Zimbabwe (RBZ) has begun collecting miners’ 50% royalties in minerals as it seeks to hold and manage reserve assets on behalf of the State.
In a statement yesterday, RBZ governor John Mangudya said the collection of 50% of royalties in the form of the minerals concerned came following amendments to the Finance Act [Chapter 23:04] and the Reserve Bank of Zimbabwe Act [Chapter 22:15].
The amendments gave the central bank the nod to maintain, over and above gold, reserve assets in the form of diamonds, platinum and lithium (and any other precious stone or precious or valuable metal specified by the bank by notice in a statutory instrument) in a form and of a purity or of a quality or of a kind specified by the central bank.
“With effect from 1 October 2022, miners of gold, diamonds, platinum and lithium (and any other precious stone or precious or valuable metal specified by the Bank by notice in a statutory instrument) shall be enjoined to pay fifty percent of royalties due to the State in kind, that is, in the form of the mineral concerned,” Mangudya said.
He said the delivery of in-kind royalties to the central bank, and holding, maintenance and subsequent marketing of the same, shall be subject to and in compliance with applicable industry practices and regulatory requirements.
“It shall be the responsibility of the Bank to facilitate the collection or delivery of the in-kind portion of the royalties and for the avoidance of doubt, only the cash portion shall be collectible by ZIMRA,” Mangudya said, adding the central bank will have the discretion to determine which prescribed mineral or metal to keep, hold or maintain from time to time, as dictated by prevailing local and international economic conditions and commodity pricing trends.
This, he said, ensures that the value of the reserve assets held is preserved or enhanced.
