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chronicle.co.zw 01 Aug, 2022 02:00 am

Government reviews platinum, lithium royalty rates

Government reviews platinum, lithium royalty rates
Bulawayo's most popular daily newspaper

Platinum group metals (PGMs) follow behind at US$3 billion, chrome, iron and steel at US$1 billion, diamonds US$1 billion, coal US$1 billion, lithium US$500 million and other minerals US$1,5 billion.“A case in point is the royalty rate on platinum, which was reduced from 10 percent in 2015 to 2,5 percent in conformity with a court judgment.He said when compared to revenues accruing from mining activities and rates charged on other precious minerals and metals such as gold, the royalty rate on platinum is sub-optimum.He said he was proposing a royalty rate of five percent, which is in line with other platinum producing countries in Africa and the new rate should come into effect on 1 January 2023.

“The royalty rate of five percent will also apply on lithium with effect from 1 January 2023,” said Professor Ncube.The proposed rate which will also apply to lithium, is set to come into effect from January 1, 2023.

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