HARARE (Commodity Online): Zimbabwe has shocked the mining sector by raising application fees by 2500% at one go. Zimbabwe is the second largest producer of platinum in the world.
As per the country's Statutory Instrument 11 of 2012, application fees for platinum claims has been raised to $500,000 from the previous $200- a 2500% direct increase. Application for Diamond claims have risen from $1 million to $5 million.
The sudden increase in the application fees has caught the nation's mining sector by surprise. Many companies are readying to urge the government to reconsider the new fees.
“These fee increments are ridiculous and unsustainable and they will force miners out of business. We are kindly asking for suspension and withdrawal of the new fees until we discuss and come up with a sustainable structure. In the meantime we should revert to the old fees, which are already high”, Mr Rangana Chauke, President of the Confederation of Zimbabwe Miners (CZM) was quoted by a national daily.
Public perception with regard to the fee increase has been mixed with some saying that the move would hamper investment into the country while others supporting the raise in view of companies “looting” national resources.
