The government has effected a reduction in platinum royalties to 2,5 percent from 10 percent to lower costs and ensure optimal exploitation of the resource commodity.

The decision was taken as part of measures to ensure equity and fairness in the taxation of platinum miners.

The royalty is charged on gross annual revenue.

The government has also extended the period of imposing a 15 percent tax on unrefined platinum exports to January next year, pending policies being implemented to beneficiate the commodity.

While there has been progress by platinum mining companies on the value addition of the commodity, the Minister of Mines and Mining Development, Cde Winston Chitando said Zimbabwe is ready to embrace the processing of all raw mineral commodities into finished products.

The government entered into special mining lease agreements with some platinum mining companies, which provide for a specific royalty rate of 2,5 percent, but mining companies who do not have special mining leases continued to be levied at 10 percent.

Platinum mining is strategic to the domestic economy since platinum is Zimbabwe’s second biggest foreign currency earning mineral after gold.