https://www.engineeringnews.co.za

Zim platinum export tax puzzles Aquarius, Implats

30th January 2015

By: Natalie Greve

Creamer Media Contributing Editor Online

  

Font size: - +

JOHANNESBURG (miningweekly.com) – A platinum export levy announced by the Zimbabwe government in 2013 remains mired in uncertainty, after the planned deferral of the tax to 2017, was not provided for in the country’s 2015 Finance Bill, gazetted on January 9.

Platinum majors Impala Platinum (Implats) and Aquarius Platinum – both of which have active platinum operations in the country – said in respective statements on Friday that the export tax, at a rate of 15% of revenue, was initially set to take effect from January 1, 2015.

The tax was aimed at encouraging platinum mining companies to invest in smelting and refining capacity in Zimbabwe.

However, Finance Minister Patrick Chinamasa announced in the 2015 National Budget statement in December that the government had deferred the export tax on unbeneficiated platinum to January 1, 2017. 

Perplexingly, the recently promulgated 2015 Finance Bill did not provide for the deferral of the tax.  

“It is not clear whether the export levy will be formally enforced and [Implats], in consultation with the Chamber of Mines in Zimbabwe, is presently seeking clarity from the authorities,” the platinum miner said.

Aquarius was also engaging with government to resolve the matter.

Advisory firm Liberum, meanwhile, emphasised that the tax would have a “disastrous” effect on the profitability of platinum mines in Zimbabwe, affecting those of Aquarius, Implats and Anglo American.

For Aquarius Platinum's Mimosa mine, the implied impact in its second-quarter results would be to reduce cash margins from $182/oz to $17/oz, it asserted.

Further, the export tax would not necessarily be tax-deductible against corporate tax.

“The tax comes at a time when platinum-group metal prices are [very low]. [Moreover,] if processing operations are built, it would also raise the risk of the assets being nationalised, as a final product is far easier to sell overseas,” the firm cautioned.

Meanwhile, Implats said it was committed to securing a conducive regulatory and fiscal framework for the mining industry in Zimbabwe, while Aquarius said it was hopeful that the matter would be resolved and the company remained committed to “building good working relations with the government of Zimbabwe,”.

Implats added that its Zimplats operation did not export unbeneficiated platinum concentrate and, as a consequence, would not be impacted by this levy. 

“Implats is not in a position to provide further details due to the sensitive and confidential nature of these engagements. Further developments will be communicated in due course,” it stated.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

Showroom

VEGA Controls SA (Pty) Ltd
VEGA Controls SA (Pty) Ltd

For over 60 years, VEGA has provided industry-leading products for the measurement of level, density, weight and pressure. As the inventor of the...

VISIT SHOWROOM 
Alco-Safe
Alco-Safe

An unmanned breathalyser that is made to be tough and simple to use. Can be used in any environment for operator-free breathalyser testing.

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.091 0.148s - 156pq - 2rq
Subscribe Now