Bank Warns Increased Platinum Royalties Could Slash Production

Mining Weekly reported Zimbabwe’s proposal to increase mining royalties in the gold and platinum sectors could lead to a plunge in production according to the African Development Bank.

As quoted in the market news:

In its latest ‘Zimbabwe Economic Monthly Review’ report, the AfDB says the upward revision of mining royalties will also discourage potential investors eyeing low-grade ores.

In his 2012 National Budget, presented late last year, Finance Minister Tendai Biti proposed increasing gold royalties from 4.5% to 7% and platinum royalties from 5% to 10%.

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