BULAWAYO — Government is planning to raise mining taxes amid projections of growth in the sector this year. Mines and Mining Development Minister Obert Mpofu claimed the country was getting very little from the “vast mineral deposits” being exploited by foreign firms.
But such revelations are set to further unsettle investors battling to come to terms with the controversial Indigenisation and Economic Empowerment Regulations, which came into effect on Monday.
The unity government was last year forced to withdraw amendments to the same Act, which would have given it the power to force foreign-owned mining companies to hand over a controlling stake to indigenous Zimbabweans.
The country’s mining sector last year contributed less than six percent of the gross domestic product as a result of a number of challenges plaguing the economy.
“We are reviewing the Mines and Mineral Act,” Mpofu said last week.
“The Act favours the miners and not the country. Very little is going into the fiscus despite the various minerals in the country.
“The country is not benefiting much. We are reviewing that to introduce new taxes so that the nation can benefit.”
Zimbabwe’s mining sector is struggling to find its feet after years of collapse at the height of the country’s economic crisis.
The country produced less than four metric tonnes of gold last year compared to more than 30 tonnes before the collapse began.
The Chamber of Mines recently said the mining sector, despite being hard hit by power outages, is showing signs of improvement, with estimates showing the sector would contribute up to 40% of the GDP.
Industry and Commerce minister Welshman Ncube last week said government was reviewing the empowerment law compelling foreigners to cede 51% shareholding to blacks.

BY NQOBANI NDLOVU

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