Business
The Observer - 2 March 2014 - 13
The Observer
2 December 2013 10
The Observer - 08 March 2014 -- 13
149 companies apply
F
for liquidation
Mining investors to be offered lower taxes
INANCE
and
Economic
Development Minister, Patrick
Chinamasa says government would
offer incentives such as lower taxes
or royalties to companies willing to add value
to local minerals.
“Let us sit down and agree. The lower the
taxes, the better for the industry,” Chinamasa
said, addressing 149two-day beneficiation
T least a companies filed for
conference in the resort the High Court in
liquidation at town.
“We want to make to keep up with high
2012, failing sure we are benefiting
operational costs a local thinkare aware that
from the depleting asset. We tank said on
Friday, and more are seen going under lays the
we don’t have to kill the goose that in 2013
as economic but the goose must also not take
golden egg, conditions worsen.
Companies are battling with high financing
the egg.”
costs, with banks charging aswants as 20
much major
Zimbabwe government
percent interest and to build refineries in the
the Zimbabwe Economic
mining companies
Policy Analysis and Research Unit (ZEPARU)
country to add value to local minerals and
said most of those that applied for liquidation
generate more income.
were on the basis that they could not pay their
debts
Labour costs in Zimbabwe are among the
highest in Southern Africa while the electricity
costs remain prohibitive and most companies
are stuck with aged machinery that is expensive
to maintain.
The number of companies seeking
liquidation has progressively increased since
dollarisation in 2009. In 2010, 50 companies,
almost five times more than the prior year
A
It has given foreign platinum miners two
years to build one or lose their licences, but
has indicated that it would be willing to let
them retain majority shares in their local units
if they do, in spite of a law compelling them
to sell at least 51 percent shares to local blacks.
“For iron ore and nickel we are encouraging
investment in steel plants. With respect to coal
mining companies, we will give incentives to
applied for liquidation. The number increased
those who put up thermal plants,” Chinamasa
to 73 in 2011 and more than doubled in 2012
said.
to 149.
The number could be we have in 2013 lot
“In diamond mining, highe