Image credit: Mining Zimbabwe (Facebook)
The move is meant to dissuade the exportation of concentrates and matte and ensure adherence to set timelines for the establishment of the base metal refinery.
The tax was previously resisted by miners and will likely dent the growth of the industry.
The Zimbabwean government said although the mineral commodities have over the years been generating over 60% of the country's total exports, much of the sector's contribution towards socio-economic development can be enhanced through mineral beneficiation and value addition.
It said the local mining sector will enhance its beneficiation and value addition strategy through five key minerals namely Gold, PGMs, Diamonds, Coal, and Chrome.
Zimbabwe is host to a large number of diamond deposits and 20 local companies are currently licensed to cut and polish diamonds.
"Whilst 10% of all locally produced diamonds are earmarked for local beneficiation, only about 0.5% are being cut and polished in the country," it said in the NDS1.
"Cut and polished diamonds are estimated to bring about 8% increase in value compared to the exportation of raw diamonds, hence, the NDS1 will seek to increase the level of locally cut and polished diamonds from 0.5% to 5% by 2025."
Zimbabwe said it will review and improve the licencing process for diamond cutting and polishing; review the licence application fees, renewal fees and tenure of the licence to be regionally and internationally competitive.
It will also promote locally cut and polished diamonds through the Minerals Marketing Corporation of Zimbabwe to regional and international markets to enhance market penetration.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
