News / National
Mining rakes in US$807m to top export earnings
14 Dec 2010 at 10:55hrs | Views
THE mining sector has so far contributed 65 percent of the country's total exports this year, raking in US$807 million, official statistics show.
Mining is projected to close the year with the highest real growth rate across sectors of 47 percent, and anticipated to grow by 44 percent in 2011.
The significant growth of the country's mining sector, especially this year, is a shift in an economy that is traditionally agriculture-based. Agriculture (excluding tobacco at 17 percent) came in at number three with 9 percent, the manufacturing sector contributed 8 percent with horticulture contributing 1 percent.
The heightened economic role of the mining sector is also reflected in the fact that it added in considerable part to Government revenue from imports by contributing 34 percent to the country's import payments, as the country is targeting to build international reserves equivalent to three months of import cover by 2012.
In terms of import payments in 2010, services also contributed 26 percent, while retail, distribution and individuals accounted for 19 percent.
The manufacturing and agriculture sectors contributed 12 percent and 9 percent to the country's import payments, respectively.
The Government is currently in the process of establishing a mineral taxation law and model that will result in the country benefiting from its mineral resources, the major percentage of which is being exported in raw form.
According to Minister of Finance Tendai Biti taxing of the mining sector will be structured as "compensation for the permanent loss of resources".
With respect to taxation of the mining sector, ZNCC economist Mr Kipson Gundani noted that as mining was one of Zimbabwe's critical industries, the authorities should carry out thorough research before undertaking any reforms.
Proposed capital allowance reforms for industry, which would have also impacted on the mining sector, have since been suspended to allow companies to recapitalise and enhance productivity.
The growth of the minerals sector this year has been buoyed by firming international prices of gold and platinum, mainly. International statistics show that gold prices have increased by an average of 45 percent between 2009 and October this year to reach all-time highs. Platinum prices also increased by an average of 54 percent during the same period.
Despite the buoyant metal prices, the Government has collected a meagre US$20,7 million in revenues from mineral sales of US$593,8 million in the nine months to September.
This disparity prompted the Government to increase royalty on gold and platinum from 4 percent to 4,5 percent and 5 percent, respectively as it seeks to leverage miners' contribution to the fiscus.
Mining is projected to close the year with the highest real growth rate across sectors of 47 percent, and anticipated to grow by 44 percent in 2011.
The significant growth of the country's mining sector, especially this year, is a shift in an economy that is traditionally agriculture-based. Agriculture (excluding tobacco at 17 percent) came in at number three with 9 percent, the manufacturing sector contributed 8 percent with horticulture contributing 1 percent.
The heightened economic role of the mining sector is also reflected in the fact that it added in considerable part to Government revenue from imports by contributing 34 percent to the country's import payments, as the country is targeting to build international reserves equivalent to three months of import cover by 2012.
In terms of import payments in 2010, services also contributed 26 percent, while retail, distribution and individuals accounted for 19 percent.
The manufacturing and agriculture sectors contributed 12 percent and 9 percent to the country's import payments, respectively.
The Government is currently in the process of establishing a mineral taxation law and model that will result in the country benefiting from its mineral resources, the major percentage of which is being exported in raw form.
According to Minister of Finance Tendai Biti taxing of the mining sector will be structured as "compensation for the permanent loss of resources".
With respect to taxation of the mining sector, ZNCC economist Mr Kipson Gundani noted that as mining was one of Zimbabwe's critical industries, the authorities should carry out thorough research before undertaking any reforms.
Proposed capital allowance reforms for industry, which would have also impacted on the mining sector, have since been suspended to allow companies to recapitalise and enhance productivity.
The growth of the minerals sector this year has been buoyed by firming international prices of gold and platinum, mainly. International statistics show that gold prices have increased by an average of 45 percent between 2009 and October this year to reach all-time highs. Platinum prices also increased by an average of 54 percent during the same period.
Despite the buoyant metal prices, the Government has collected a meagre US$20,7 million in revenues from mineral sales of US$593,8 million in the nine months to September.
This disparity prompted the Government to increase royalty on gold and platinum from 4 percent to 4,5 percent and 5 percent, respectively as it seeks to leverage miners' contribution to the fiscus.
Source - Byo24
