News / National
Marange diamonds revenue expected to treble
24 Feb 2012 at 07:02hrs | Views
DIAMOND mining in Marange is expected to contribute US$640 million to the fiscus this year through dividends, a figure thrice the combined contributions from other mining operations in Zimbabwe.
While Government is expecting US$640 million from Marange diamonds, it anticipates only US$190 million in royalties from the exploitation of all other minerals in the country.
Contributions from the sector could even be less because the US$190 million includes royalties paid by companies operating in Chiadzwa.
Last year, diamond mining companies at Marange declared a US$150 million dividend to the Government.
These figures were released by the Ministry of Finance during at a stakeholders' consultation workshop on diamond policy organised by the Ministry of Mines and Mining Development held in Harare yesterday.
The workshop sought to solicit contributions from stakeholders in the diamond industry for consideration in the formulation of the Diamond Act.
According to the Ministry of Finance, diamond revenue was subdued in the 2011 fiscal year because the gems were not being sold due to challenges experienced during certification under the Kimberley Process Certification Scheme.
The ministry said it was important for the Zimbabwe Revenue Authority to play its part in the "entire value chain of diamonds from mining, marketing, to distribution and collection to the Government."
"Currently, the revenue authority (Zimra) merely receipts remittances of royalties collected by the Minerals Marketing Corporation of Zimbabwe from the sale of minerals.
"However, in order to increase mineral revenue inflows to the fiscus, the revenue authority should put in place a mechanism to verify throughput of extracted minerals.
"It is important to conclude as a matter of urgency work on the diamond bill in order to enhance transparency," said Secretary for Finance Mr Willard Manungo, in a statement read on his behalf at the workshop.
Secretary for Media, Information and Publicity Mr George Charamba said the projected US$640 million was clear testimony that Zimbabwe was benefiting more from its Chiadzwa gems than from other minerals.
This puts to rest claims by MDC formations and Western-backed civil society that diamonds were not benefiting the nation.
"The figures speak for themselves. There is more to be gained by owning than through royalties. One hopes that our law wakes up to that clear fact.
"It also puts paid certain worries in certain political circles that the country 'is finishing whilst we are in Harare'. Diamond revenue has in fact been the redeemer for the country," Mr Charamba said.
Government, through the Zimbabwe Mining Development Corporation, is in 50-50 joint venture partnerships with Anjin Investments, Diamond Mining Corporation and Mbada Diamonds, and wholly owns Marange Resources.
While Government is expecting US$640 million from Marange diamonds, it anticipates only US$190 million in royalties from the exploitation of all other minerals in the country.
Contributions from the sector could even be less because the US$190 million includes royalties paid by companies operating in Chiadzwa.
Last year, diamond mining companies at Marange declared a US$150 million dividend to the Government.
These figures were released by the Ministry of Finance during at a stakeholders' consultation workshop on diamond policy organised by the Ministry of Mines and Mining Development held in Harare yesterday.
The workshop sought to solicit contributions from stakeholders in the diamond industry for consideration in the formulation of the Diamond Act.
According to the Ministry of Finance, diamond revenue was subdued in the 2011 fiscal year because the gems were not being sold due to challenges experienced during certification under the Kimberley Process Certification Scheme.
The ministry said it was important for the Zimbabwe Revenue Authority to play its part in the "entire value chain of diamonds from mining, marketing, to distribution and collection to the Government."
"However, in order to increase mineral revenue inflows to the fiscus, the revenue authority should put in place a mechanism to verify throughput of extracted minerals.
"It is important to conclude as a matter of urgency work on the diamond bill in order to enhance transparency," said Secretary for Finance Mr Willard Manungo, in a statement read on his behalf at the workshop.
Secretary for Media, Information and Publicity Mr George Charamba said the projected US$640 million was clear testimony that Zimbabwe was benefiting more from its Chiadzwa gems than from other minerals.
This puts to rest claims by MDC formations and Western-backed civil society that diamonds were not benefiting the nation.
"The figures speak for themselves. There is more to be gained by owning than through royalties. One hopes that our law wakes up to that clear fact.
"It also puts paid certain worries in certain political circles that the country 'is finishing whilst we are in Harare'. Diamond revenue has in fact been the redeemer for the country," Mr Charamba said.
Government, through the Zimbabwe Mining Development Corporation, is in 50-50 joint venture partnerships with Anjin Investments, Diamond Mining Corporation and Mbada Diamonds, and wholly owns Marange Resources.
Source - TH
