Zimplats royalty expenses hit $12,2m

Source: Zimplats royalty expenses hit $12,2m | The Herald March 5, 2019 Oliver Kazunga Senior Business Reporter ZIMBABWE’S largest platinum producer, Zimplats, has recorded a 74 percent increase in royalty and commission expenses to $12,2 million for the half year period ended December 31, 2018. During the comparable period in 2017, royalty and commission expense […]

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Source: Zimplats royalty expenses hit $12,2m | The Herald March 5, 2019

Zimplats royalty expenses hit $12,2m

Oliver Kazunga Senior Business Reporter
ZIMBABWE’S largest platinum producer, Zimplats, has recorded a 74 percent increase in royalty and commission expenses to $12,2 million for the half year period ended December 31, 2018. During the comparable period in 2017, royalty and commission expense by the platinum miner stood at $7 million.

“Royalty and commission expense for the half year increased by 74 percent from $7 million reported in the same period last year to $12,2 million mainly due to an increase in royalty rates after migrating from a special mining lease to a mining lease on  May 31, 2018,” said the company in its half year report for the period.

A royalty is a usage based tax, which is calculated as a percentage of the gross fair market value of minerals produced and not quantity. Royalties are levied in terms of section 244 of the Mines and Minerals Act[Chapter21:05], whilst the royalty rates are fixed through the Finance Act. The Mines and Minerals Act provides for a full rebate of royalty in respect of all minerals or mineral-bearing products used wholly within Zimbabwe.

In Zimbabwe royalties are charged depending on the mineral as and it is at 10 percent for platinum, 15 for diamonds and five percent for gold.

The giant miner said revenue for the period under review also increased by two percent to $291,8 million compared to the same period in 2017 driven by a one percent increase in both metal prices and 4E sales volumes.

The gross revenue per platinum ounce for the half year at $2,1 million was one percent higher than the $2,1 million reported during the same period last year.

“Cost of sales at $187,1million was two percent higher than the same period last year’s $184 million mainly due to inflation.

“This was partly offset by the substitution of open-pit ore with lower cost underground ore following the closure of the South Pit Mine in April 2018 and decrease in depreciation arising from the conversion of upper ores resources to reserves,” said Zimplats.

The platinum giant during the period under review, also benefited from an export incentive of $29,4 million (2017: $5,6 million) and the recognition of a $9,6 million refund due from the Zimbabwe Revenue Authority.

The refund arose from a court ruling in favour of the platinum producer in respect of fines inappropriately levied by Zimra on the disputed customs duty rebates case.

In 2012, Government issued a $28 million garnishee order against Zimplats to recover outstanding royalties, which the mining group disputed.

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Horror as 11-day-old baby spends whole night crying lying under dead mother’s body

An 11-day-old baby from Medium Density Suburb in Beitbridge went through a tortuous time on Saturday when she spent the whole night crying with her hand and part of the body lying under the weight of the mother Thobokile Sibanda’s corpse. The mother mu…

An 11-day-old baby from Medium Density Suburb in Beitbridge went through a tortuous time on Saturday when she spent the whole night crying with her hand and part of the body lying under the weight of the mother Thobokile Sibanda’s corpse. The mother must have died during the night and the baby was only rescued […]

Passengers stranded as AirZim delays by 16 hours 

Source: Passengers stranded as AirZim delays by 16 hours – NewsDay Zimbabwe March 5, 2019 BY XOLISANI NCUBE Air Zimbabwe passengers booked on flights from either Harare to Bulawayo or from Johannesburg to Harare on Sunday were stranded for hours after the struggling airline failed to service the routes on time. Operating with one aircraft […]

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Source: Passengers stranded as AirZim delays by 16 hours – NewsDay Zimbabwe March 5, 2019

BY XOLISANI NCUBE

Air Zimbabwe passengers booked on flights from either Harare to Bulawayo or from Johannesburg to Harare on Sunday were stranded for hours after the struggling airline failed to service the routes on time.

Operating with one aircraft for both domestic and regional routes, passengers who intended to fly to Bulawayo were left stranded at the Robert Gabriel Mugabe International Airport, while those who were flying from South Africa waited for more than 16 hours at OR Tambo International Airport before they were collected after 10pm.

Air Zimbabwe corporate affairs head Tafadzwa Mazonde said the only aircraft running at the State-owned airline had undergone maintenance and was not ready in time for the scheduled flights.

“It was an unfortunate day yesterday (Sunday). Our remaining plane had to undergo maintenance, which failed to finish on the scheduled time,” he said.

Mazonde said the situation had improved and they now awaited delivery of a second aircraft at the end of the month.

In January, the airline suspended its flights up to mid-month because its only functional plane was also undergoing maintenance.

The airline, which has largely been operating only two serviceable aircraft, was left with one plane following the grounding of its popular Boeing 737-200 ER, named Mbuya Nehanda last year.

The remaining aircraft, the 767-200ER, also known as Chimanimani, was now being forced to service all its regional and local routes, with hopes of getting another plane at the end of March.

Mbuya Nehanda serviced the Harare /Bulawayo /Victoria Falls /Harare as well as Harare /Dar es Salaam route, while Chimanimani serviced South Africa.

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Douglas Mwonzora blasted over what he said about Nelson Chamisa’s performance in 2018 elections

TENSION continues to rise in the MDC ahead of its elective congress with secretary-general Douglas Mwonzora saying party president Nelson Chamisa failed to meet a target of attracting 4,5 million votes in the July 30 general elections. His fiery commen…

TENSION continues to rise in the MDC ahead of its elective congress with secretary-general Douglas Mwonzora saying party president Nelson Chamisa failed to meet a target of attracting 4,5 million votes in the July 30 general elections. His fiery comments come after some party bigwigs loyal to Chamisa led by deputy president Morgen Komichi, said […]