Zimbabwe’s gold miners are poised for a major boost as government considers removing royalties to achieve this year’s projected output of 28 tonnes.
The Ministry of Mines and Mining Development, central bank and treasury are in talks over the removal of at least four percent royalties charged to gold miners, with the Chamber of Mines chief executive officer Mr Issac Kwesu saying the intention is aimed at facilitating growth of the mining industry.
“Growth is what we need and we hope that can be sustained,” said Mr Kwesu.
Zimbabwe Miners Federation president Mrs Apollina Munzverengwi says the removal of royalties will provide relief to small scale gold producers.
“The miners are not really happy with the current situation and we really need something,” she said.
Mines and Mining Development Minister Cde Walter Chidhakwa has, however, revealed the removal of the royalties will depend on the ability by the miners to produce the targeted 28 tonnes this year.
“There is a target and if it can be met, the better,” he said.
Gold production is being considered strategic to the economy as it has the potential of rebuilding gold reserves and improve foreign exchange inflows.