Search Results for "Zimbabwe"

Zimbabwe Suspends 15 Percent Platinum Export Tax

Reuters reported that Zimbabwe plans to suspend a 15 percent tax on raw platinum exports to give mining companies two years to set up smelters and refineries in the country.

As quoted in the publication:

President Robert Mugabe’s government introduced the levy on unrefined platinum in January to encourage local processing of the metal. Miners, however, said this would slash their margins at a time global prices were falling.

Anglo American Platinum (Amplats), Impala Platinum Holdings and Aquarius Holdings own mines in Zimbabwe, which holds the second-largest reserves of the metal.

Mines Minister Walter Chidhakwa told the Herald, which reflects government thinking, that he had presented the mining companies’ request to defer the tax in a report to Mugabe’s cabinet and the cabinet had accepted it.

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Zimbabwe Defends Mine Ownership Plan

Reuters reported that Zimbabwe’s President defended his government’s plan to take majority control of foreign-owned mining companies, saying investors must pay for exploiting Africa’s mineral wealth.

As quoted in the market news,

Western countries have withheld financial aid to Harare in protest over Mugabe’s policies and charges he has rigged elections to stay in power, worsening an economic crisis that has driven millions of Zimbabweans to South Africa for jobs.

Impala Platinum, Anglo American Platinum and London-listed Aquarius Platinum are among foreign firms operating in Zimbabwe, which has significant reserves of platinum, diamonds and gold.

Click here for the full Reuters report

Zimbabwe Platinum Producers to Start Processing Metal Next Year

Bloomberg reported platinum-mining companies in Zimbabwe will probably be processing the metal in the country by the middle of next year.

As quoted in the market news:

Producers “should certainly see the commissioning of beneficiation of platinum projects by mid next year,” Chamber of Mines President Alex Mhembere told lawmakers on Friday in the capital, Harare. The organization represents most medium- and large-scale miners in the country.

Zimbabwe’s government has repeatedly warned miners of the precious metal that taxes and royalties will be raised unless the mineral is smelted in the country, rather than in neighboring South Africa. A 15 percent levy was added in January. Producers in the country include Anglo American Platinum Ltd., and Impala Platinum Holdings Ltd., the world’s two biggest for the metal.

Click here for the full Bloomberg report

Zimbabwe May Revoke Platinum Export Tax if Refinery Built

Reuters reported that the Zimbabwe government would consider removing a tax on raw platinum exports, but only if mining companies build a refinery and process platinum locally. The 15 percent tax was implemented January 1, but according to Mines Minister Walter Chidhakwa, the platinum tax could be removed.

Chidhakwa is quoted as saying:

If they build the refinery facility, I will be quite happy to recommend to His Excellency the President, the Minister of Finance and Parliament that we revoke the policy.

Click here to read the full Mining Weekly report.



Zimbabwe Platinum Export Tax Uncertainty Puzzles Companies

Mining Weekly reported that a platinum export tax levied by the Zimbabwean government in 2013 was not included in the country’s 2015 finance bill. The move has left platinum companies confused.

As quoted in the market news:

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.

Click here for the full Mining Weekly report

US Unhappy with Zimbabwe-Russia Platinum Mine Partnership reported that the United States wants to impose sanctions against Zimbabwe due to the country’s dealings with Russia for the construction of a $3 billion platinum mine.

As quoted in the publication:

According to Herald columnist Nathaniel Manheru, who is thought to be President Robert Mugabe’s spokesman George Charamba, the Obama administration threatened further sanctions against Zimbabwe over its ties with Russia.

Manheru’s claims could not be verified with the US embassy in Harare late Friday night.

The US has imposed sanctions against Moscow, tightening restrictions on major Russian state banks and corporations, after accusing the Kremlin of providing military backing to Ukrainian separatists and generally destabilising the region.

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Russian Consortium to Build $3 Billion Platinum Mine in Zimbabwe

Reuters reported that a consortium of Russian companies is planning to develop a platinum mine in Zimbabwe. The $3 billion project will target 250,000 ounces of annual production within three years, with Mines Minister Walter Chidhakwa stating that the project would have a mine life of 20 years.

As quoted in the publication:

The project, which would include a mine, concentrator and smelter, is located near Harare and comes at a time when economic growth has been slowing after expanding at a blistering pace in the past few years.

That rapid growth followed a decade of contraction and the government is keen to get the ball rolling again as the jobless rate remains close to 80 percent.

On Tuesday Mugabe, alongside Russia’s Foreign Minister Sergei Lavrov, oversaw the signing of an agreement to develop what is expected to become Zimbabwe’s largest platinum mine.

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Major Zimplats Platinum Mine Collapses in Zimbabwe

All Africa reported on Monday that Zimplats (ASX:ZIM) CEO, Alex Mhembere, confirmed the collapse of a major underground mine in the country. The CEO stated that the mine collapsed because of rising deterioration of ground conditions, according to All Africa.

As quoted in the press release:

According to reports the South African-based Impala Platinum, which is the parent company of Zimplats, saw its shares drop by close to three percent as a result of the accident. This was the second mining accident involving a platinum mining company in two years. In 2012 more than 70 miners were rescued at Mimosa Mine after they had been trapped underground for days following the collapse of the conveyor equipment.

Click here to read the full All Africa article.

Russian Consortium to Explore Zimbabwe Platinum Field

ITAR-TASS reported that a group of Russian companies including Vneseconombank, Russian Vi Holding and state defense conglomerate Rostec are planning to explore a platinum field in Darwendale in Zimbabwe. The platinum field is thought to be the second largest in the world, according to ITAR-TASS.

As quoted in the publication:

The platinum field in the Darwendale valley has proved reserves of 19 tonnes of platinum and 755 tonnes of previous metals including palladium, rhodium, gold, nickel and copper in platinum equivalent. After the mining and processing complex is launched, the production capacity can amount to 600,000 ounces of platinum annually.

Click here to read the full ITAR-TASS article.

Zimbabwe Considering Implats’ Platinum Refinery Proposal

Reuters reported that Zimbabwe’s government is in the process of considering Impala Platinum Holdings Ltd.’s (OTCMKTS:IMPUY) proposal for the construction of a platinum refinery in the country.

Recently, Zimbabwe’s president said that if a platinum refinery is not set up within two years, it will ban unrefined exports of the metal.

As quoted in the market news:

Last month mines minister Walter Chidhakwa said Zimbabwe had shortlisted two companies to set up the refinery, which mining companies say will cost up to $3 billion, equal to almost 30 percent of Zimbabwe’s gross domestic product.

Chidhakwa said he had held a meeting with the chairman of Implats on Wednesday on setting up a refinery.

‘They (Implats) have got ideas which we are beginning to consider,’ he told reporters, but declined to give details.

‘It’s a big project and we have to look at a whole range of things. We have to think about the financing and the technology among others,’ he said.

Click here to read the full Reuters report.

China May Aid Zimbabwe in Platinum Refinery Set Up

Bloomberg reported that Lin Lin, a Chinese ambassador, said his country is willing to help Zimbabwe set up its first platinum refinery.

As quoted in the market news:

Zimbabwe’s Finance Minister Patrick Chinamasa in January led a delegation to China to seek concessional loans, Lin Lin said. The ministry will send another delegation next week, he said.

The delegation met representatives of Sinosure, or the China Credit Export & Insurance Corp., and Export Import Bank of China, said Deputy Foreign Affairs Minister Christopher Mutsvangwa.

‘It’s now up to the Ministry of Mines to decide,’ he said. ‘We want to have a refinery here, so we said to them to show our good will on our relations between Zimbabwe and China we gave Global Platinum a license’ to seek platinum in the country.

Click here to read the full Bloomberg report.

Proposed Zimbabwe Platinum Export Tax Faces Criticism

Bloomberg reported that a proposed 15-percent tax on Zimbabwe’s platinum exports is garnering heavy criticism. The tax is part of the country’s efforts to keep more industry revenue within its borders.

As quoted in the market news:

The government proposed a tax on shipments of unrefined platinum in December that would apply from Jan. 1 this year. The levy is badly timed and would hurt competitiveness, the Zimbabwe Chamber of Mines said in a document submitted to a parliamentary committee and obtained by Bloomberg News.

‘With the platinum price already depressed, compounded by other challenges, this will hamper down viability of the sub- platinum sector,’ it said.

Click here to read the full Bloomberg report.

Zimbabwe Shortlists Platinum Refinery Builders

Mining Weekly reported that Zimbabwe, which last year gave miners two years to build a platinum refinery in the country, has shortlisted two firms interested in doing so.

As quoted in the market news:

Mines Minister Walter Chidhakwa told reporters nine companies had submitted refinery plans and two had been shortlisted. The government would conduct due diligence soon.

Anglo American Platinum and Impala Platinum Holdings, the world’s two largest platinum producers, had mines in Zimbabwe, shipping platinum matte to South Africa for refining.

Click here to read the full Mining Weekly report.

Mwana Africa Plans to Refine PGMs in Zimbabwe

Bloomberg reported that Mwana Africa plc (LSE:MWA) plans to raise money to restart a Zimbabwe-based Bindura Nickel Corp. refinery that was mothballed six years ago. The company intends to use it to refine platinum-group metals (PGMs).

As quoted in the market news:

Zimbabwe is putting pressure on the local units of the world’s biggest platinum producers, Anglo American Platinum Ltd. (AMS) and Impala Platinum Holdings Ltd. (IMP), to bid for the rights to build refineries. The government plans to ban raw exports of platinum by the end of the year in a bid to stimulate growth in the southern African country, which has the world’s largest reserves of the metal after South Africa.

Click here to read the full Bloomberg report.

Zimbabwe’s Platinum Refinery Deadline May be Unachievable

Bloomberg reported that although Robert Mugabe, president of Zimbabwe, last year told Impala Platinum Holdings Ltd. (OTCMKTS:IMPUY), Aquarius Platinum Ltd. (ASX:AQP,LSE:AQP) and Anglo American Platinum plc (LSE:AAL) that he would halt platinum exports if they didn’t build a refinery for the metal by 2015, Deputy Mines Minister Fred Moyo now believes that deadline may be unachievable.

As quoted in the market news:

‘I am not sure if it will be possible to achieve that deadline since we are left with just one year,’ Deputy Mines Minister Fred Moyo said by phone today from the capital, Harare. ‘This depends on technology, funding availability, skills and as well as timing. We are producing around 400,000 ounces but setting up a refinery may cost a billion, $2 billion, but this is dependent on our production levels.’

Click here to read the full Bloomberg report.

Zimbabwe Platinum Miners Receive Call for Refinery Proposals

Voice of America reported that platinum miners in Zimbabwe must submit proposals to build a precious metals refinery by January 18. The move comes on the back of President Robert Mugabe’s 2013 announcement that miners must build a refinery in the country in two years or be subject to a ban on raw exports of the metal.

As quoted in the market news:

The ultimatum would affect the world’s two largest platinum producers, Anglo American Platinum and Impala Platinum Holdings (Implats), which both have operations in Zimbabwe.

The southern African country has the second-largest known platinum reserves in the world and the government last year gave miners two years to set up a refinery in the country or face a ban on raw exports of the metal.

Busi Chindove, spokeswoman for Implats’ local unit Zimplats, confirmed to Reuters that her company had received a letter from the government to submit its plans for a platinum refinery, but would not give details.

Click here to read the full Voice of America report.

Zimbabwe Offers Increased Ownership in Exchange for Refinery

Reuters reported that according to Zimbabwe’s mines minister, the country will allow foreign-owned platinum mining companies to own majority shares in their operations as long as they build a refinery in the country. The norm is for companies to send mined material to South Africa for processing.

As quoted in the market news:

New mines Minister Walter Chidhakwa said that if platinum producers came together and established a refinery, which the local mining chamber says will cost at least $2 billion to build, the government could allow the mines to own more shares.

Chidhakwa said there was room for negotiation with mines, pointing to a deal signed in 2010 that allowed the African unit of India’s Essar Group to own 54 percent of Zimbabwe Iron and Steel Company (ZISCO) as an example of Harare’s flexibility.

‘The government is simply saying that the guiding principle is 51/49 percent but if the investment does something to this country that can convince us to graduate or move away from the 51/49 percent, we will do so,’ Chidhakwa told Reuters in an interview.

Click here to read the full Reuters report.

Zimbabwe May Halt Raw Platinum Exports to South Africa

Reuters reported that Robert Mugabe, president of Zimbabwe, said the country may stop exporting raw platinum to South Africa in order to force mining companies to build a refinery in the company.

As quoted in the market news:

Mugabe, who at the age of 89 won re-election in July, told a weekend meeting of his ruling ZANU-PF party that platinum producers were ignoring a government directive two years ago to set up a refinery in the country.

‘Let us close our doors immediately and say no raw platinum will go to South Africa. The former minister gave them two years and we must see them now arranging to build a refinery,’ the state-run Herald newspaper quoted Mugabe as saying.

‘If they have not started, after that warning, building a refinery then when the time comes for us to demand that all refining has to be done here, they should not blame us.’

Click here to read the full Reuters report.

Zimbabwe to Review Plan for Zimplats Sale

Reuters reported that the government of Zimbabwe is set to review Impala Platinum Holdings Ltd.’s (OTCMKTS:IMPUY) plan to sell control of Zimplats Holdings Ltd. (ASX:ZIM) to local black investors for $971 million. The sale is part of the country’s indigenization program.

As quoted in the market news:

In a statement accompanying its July-September results, Zimplats said Zimbabwe’s new indigenisation minister, Francis Nhema, would review the agreement as well as discuss Harare’s plans to reposess half of the company’s mining claims.

‘Following the installation of a new government, the company’s indigenisation plan will now be reviewed by the new Minister of Indigenisation,’ Zimplats said.

‘These discussions will also include further engagement on the previously announced land acquisition by government.’

It was not immediately clear why the government was undertaking the review.

Click here to read the full Reuters report.

Aquarius Platinum Falls Most in Five Months on Zimbabwe News

Bloomberg reported that yesterday, Aquarius Platinum Ltd. (ASX:AQP,LSE:AQP) took its biggest fall in five months on news that it plans to open a second shaft at its Mimosa platinum mine, located in Zimbabwe. Companies in Zimbabwe must cede project stakes to local investors.

Aquarius co-owns Mimosa with Impala Platinum Holdings Ltd. (OTCMKTS:IMPUY).

As quoted in the market news:

The stock fell as much as 6 percent, the most since May 23 on an intraday basis, and traded 5 percent lower at 6.84 rand by 2:56 p.m. in Johannesburg. That compares with a 0.4 percent decline in the six-member FTSE/JSE Africa Platinum Mining Index. Aquarius is the worst one-day performer on the gauge.

Click here to read the full Bloomberg report.