Business / Economy
Zimbabwe mulls 1 000pc exploration fee hike
18 Nov 2011 at 04:09hrs | Views
EXPLORATION fees for mining projects are set to increase by up to 1 000 percent as Government seeks to curb speculative hoarding of mineral claims.
Mines and Mining Development Deputy Minister Gift Chimanikire said the proposed fees were submitted to the Finance Ministry for approval and, if approved, would be effected next year.
"We have come up with a new fees review for application, licence, exploration and general fees. Special claims are being given at paltry fees thereby encouraging people to hold claims for speculative purposes. Some of our reviews will be (between) 100 and 1 000 percent."
Early the year, the Finance Ministry approved an increase in pre-exploration fees for diamond, gold, coal, platinum and various mining projects
The fees for new diamond projects were raised from US$50 000 to US$1 million.
Fees for new coal projects were also raised to US$100 000 from US$20 000.
Mr Chimanikire said the latest review was meant to stem the speculative holding of mineral claims, adding that current fees were too low. He added that the new fees structure would also ensure that the country continued to benefit from its huge mineral resources.
Changes in the fees structure are expected to discourage miners, particularly conglomerates, from amassing claims for speculative purposes.
The Government is also set to introduce the "use it or lose it" policy to discourage the hoarding of mining claims for speculative reasons.
Mechanisms are also being worked out to differentiate special grants fees charged between large-scale miners and small-scale miners.
Last year, Government warned a number of mining companies against hoarding vast claims of minerals without working them, yet there was huge interest from other interested investors. Investigations by the Government then revealed that there were certain claim holders who were clinging to undeveloped ground for speculative reasons and simply paid the "insignificant" claim renewal fees.
But some industry players said the new levies would discourage new investments particularly from locals.
Some observers have pointed out that the hefty new fees were against the indigenisation and empowerment policy, as few locals would be able to participate in the industry.
Mines and Mining Development Deputy Minister Gift Chimanikire said the proposed fees were submitted to the Finance Ministry for approval and, if approved, would be effected next year.
"We have come up with a new fees review for application, licence, exploration and general fees. Special claims are being given at paltry fees thereby encouraging people to hold claims for speculative purposes. Some of our reviews will be (between) 100 and 1 000 percent."
Early the year, the Finance Ministry approved an increase in pre-exploration fees for diamond, gold, coal, platinum and various mining projects
The fees for new diamond projects were raised from US$50 000 to US$1 million.
Fees for new coal projects were also raised to US$100 000 from US$20 000.
Changes in the fees structure are expected to discourage miners, particularly conglomerates, from amassing claims for speculative purposes.
The Government is also set to introduce the "use it or lose it" policy to discourage the hoarding of mining claims for speculative reasons.
Mechanisms are also being worked out to differentiate special grants fees charged between large-scale miners and small-scale miners.
Last year, Government warned a number of mining companies against hoarding vast claims of minerals without working them, yet there was huge interest from other interested investors. Investigations by the Government then revealed that there were certain claim holders who were clinging to undeveloped ground for speculative reasons and simply paid the "insignificant" claim renewal fees.
But some industry players said the new levies would discourage new investments particularly from locals.
Some observers have pointed out that the hefty new fees were against the indigenisation and empowerment policy, as few locals would be able to participate in the industry.
Source - New Ziana.
