GIANT mining concern Mwana
Africa has applauded government for reducing royalty on gold producers adding
that the move will go a long way in providing a financial boost to miners.
Finance
Minister Patrick Chinamasa last week announced in his maiden but much awaited
Mid-term fiscal Policy Review Statement that the royalty percentage for gold
producers has been reduced from the current 7 percent to 5 percent with effect
from October 1, 2014.
In
a statement Mwana chief executive Kalaa Mpinga said they had engaged government
on the issue for some time and is pleased that it has finally reacted.
“We
have actively engaged with government on this issue and it is very pleasing
that – in a spirit of understanding and co-operation – it has recognised the
challenges inherent in the gold mining industry at present.
“The
reduction in the gold royalty rate will provide a welcome financial boost to
Freda Rebecca and Mwana,” he said.
Most
companies in the mining sector are lobbying government to review some tax
brackets arguing that it is making their operations expensive against falling international
metal prices.
Gold
and Platinum prices were on the retreating side in the first half of 2014.
Mwana Africa has an 85 percent interest in and
operates the Freda Rebecca gold mine at Bindura in Zimbabwe’s Mashonaland
Central province.
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