Zimbabwe’s platinum producers are seeking a reduction of the current royalty fees of 10% to sustain their operations in the current depressed trading conditions, Reuters quotes a statement from the country’s Chamber of Mines.
Said the Chamber of Mines in a statement: “The platinum sector requires support in the form of royalty reduction to restore viability, especially during this period of depressed prices.”
Through with the world’s highest platinum deposits, Zimbabwe has yet to fully exploit its potential, thanks for power shortages, and the country’s uncompromising version of black economic empowerment.
It remains to be seen whether the government will heed the call or at least reach a compromise deal. But the way things stand the prospects do not appear good for mines, as the government needs every penny from tax revenue to boost is depleted coffers. Reports suggest the economic situation is dire, as the country braces for the worst drought in years.