Zim diamond miners call for lower royalties

Diamond producers in Zimbabwe have appealed to the government to reduce royalties for the precious stones from the current 10% of gross revenue to improve viability in the sector, according to the local media.
It was not clear what rate the Chamber of Mines of Zimbabwe wants.
The Independent newspaper quoted the chamber as saying in its State of the Mining Industry report for 2021 that Harare should act to avoid the suffocation of the sector.
“Diamond producer respondents indicated that the royalty for diamonds at 10% is still one of the highest in the world and is undermining the viability of diamond producers,” said the Chamber of Mines.
“They are expecting the government to review the royalty downwards in line with best practices.”
The call comes despite finance minister Mthuli Ncube’s announcement late last year that the Treasury had lowered royalties for diamond mining from 15% to 10% of gross revenue, to reduce the cost of mining deep-lying conglomerate deposits.
Botswana, the leading diamond producer in Africa, also receives 10% royalty on its diamonds.
Diamonds are expected to contribute $1 billion annually to the Zimbabwean economy from 2023. 

Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished