Zimbabwe’s Mining Royalties System boosts its diamond, gold reserves

The Reserve Bank of Zimbabwe (RBZ) says it has stockpiled over 300 000 carats of diamonds, and 350kg of gold, collected under the new mining royalties system that requires mining companies to pay 50 percent of their royalties in refined minerals.

State media reported the RBZ governor Mr John Mangudya as saying: “Since the introduction of the policy, we have collected about 300 000 carats of diamonds, while our gold reserves are around 350kg. This translates to US$20 million worth of gold in our reserves,” he said.

“The equivalent cash of diamonds in the reserves is difficult to get because there is no universal body that sets prices for diamonds.

“The other companies are also submitting their royalties in cash since the minerals are bulky.”

The legislative measures were indicated in amendments to the Finance Act (Chapter 23:04) and Reserve Bank of Zimbabwe Act (Chapter 22:15).

Under the law, mining companies extracting precious and high-value minerals are required to cede refined mineral products, as part payment of royalties to Government, in an initiative introduced to build the country’s mineral reserves.

The policy came into effect last October with gold, diamonds, lithium and platinum group metals (PGMs) producers depositing the minerals at the RBZ.

Sunday mail ZW/Hauwa Abu