Q1 mining royalties up 17pc

17 Apr, 2018 - 13:04 0 Views
Q1 mining royalties up 17pc

eBusiness Weekly

BH24 Reporter
HARARE – Zimbabwe’s mining royalties for the quarter to March 31, 2018 went up by 16, 8 percent to $19, 1 million compared to $16, 3 million recorded during the same period last year, on improvements in the sector performance and increased efficiencies in collection.

According to the Zimbabwe Revenue Authority (ZIMRA), this was however 10 percent shy of the targeted $21, 5 million.

“The subdued performance of the revenue head is attributed to fluctuating global prices of minerals as well as improved production levels from last year,” said ZIMRA chairman Willia Bonyongwe.

The formalization of small scale miners of late has also increased their contribution towards tax collections.

Overall revenue performance for the quarter was above same period last year and the tax authority is projecting an upward trend for the rest of the year.

In 2017 the mining sector grew by 8, 5 percent underpinned by strong performance in gold -14 percent, diamond – 44 percent, chrome – 231 percent and coal at 16 percent. However the platinum group of metals (PGMs) recorded declines.

Mineral revenue for the year was at $2, 38 billion which was 59 percent of total exports and 4 percent above prior year’s $2, 2 billion benefitting from strong output performance and favourable prices especially of god and palladium.

According to the Chamber of Mines revenue from the mining sector is projected to grow to $2, 5 billion in 2018 although the sector remains fragile and continues to operate below capacity due to a host of challenges among them high cost structures, foreign currency challenges and power disruptions.

This growth however is expected to further boost the sector’s contribution to tax base.

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