Mthuli’s 2023 Budget Anchored On New Mining Royalty Policy

Minister of Finance and Economic Development Professor Mthuli Ncube delivered the 2023 national budget yesterday with indications Zimbabwe has Given First Details of New Mining Royalty Policy anchoring the 2023 national budget on Mining.

Mthuli projected GDP growth to slow to 3.8% in 2023 from 4% this year.

The Minister of Finance provided the first details of how a new mineral royalty policy will be enforced, as the country considers more than doubling spending in 2023 to help revive an economy that exited a recession last year.

This royalty policy that came into effect in October compels miners to pay half of their royalties in minerals and the rest in cash. The plan presented by the Zimbabwean Finance Minister Mthuli Ncube yesterday breaks the payment down to half in mineral form, 40% in local currency and 10% in foreign-currency cash.

“Although traditionally, royalties are remitted in cash, it is pertinent that the current formulae be reviewed in line with government policy to preserve value and mitigate against revenue loss,” said Ncube.

Zimbabwe has vast mineral resources including gold, diamonds and coal deposits. It has the world’s third-largest known platinum deposits after neighboring South Africa and Russia. Miners say they will comply with the new policy toward Minister of Mines Winston Chitando’s projected Usd$$12 billion mining economy by 2023 very achievable after the nation clearly is on track for a Usd$8 billion mining economy by end of next month. All this will eventually anchor the achievement of President Emmerson Dambudzo Mnangagwa’s middle income Economy by 2030.