Distressed miners appeal to govt

LIVINGSTONE MARUFU

 

Troubled local miners are pleading with the government  for support  as the  global  commodity prices continue to  go south, Business Times can report.

The latest development was disclosed by the Chamber of Mines of Zimbabwe president Thomas Gono.

He claimed that one of the main problems was the tax system, which is still wreaking havoc on the ailing industry.

In an effort to get themselves out of their current situation, the miners also pleaded with the government to expand incentives.

“The miners require  massive supportive measures in line with the unfolding softening commodity prices. Prices have gone down,  for example, palladium was US$2200 per tonne  last year now it’s US$1100 and that is the impact.

“Overall, the prices have  gone down by 30- 40%  and this is a direct  impact to the revenues of the  mining companies  and also direct revenues for the government,” Gono said.

At the moment, the mining sector accounts for 13.5% of GDP, 19% of government revenue, 3% of direct formal employment, and 80% of exports receipts.

“This will cause serious informalisation in the mining sector therefore we need the government to give incentives to formal mining businesses,”Gono said.

 

 

Related