Zimbabwe’s Mining Fiscal Regime: H1 2014

The mining industry in Zimbabwe is governed by the Ministry of Mines and Mineral Development and Chamber of Mines of Zimbabwe (COMZ). The Mines and Mineral Act of 1961 is the main act that consolidates and amends law related to the mines and minerals.

Scope

The report outlines Zimbabwe’s governing bodies, governing laws, prospecting licenses, mining rights and obligations and key fiscal terms which includes Royalty, Corporate Income Tax, Capital Gains Tax, Presumptive Tax, Withholding Tax, Fiscal Incentives, Customs and Excise Incentives, Loss Carry Forward and VAT.

Key Highlights

• The Ministry of Mines and Mining Development was established to facilitate and regulate the sustainable mining, value addition and marketing of the country’s mineral resources for the social and economic well-being of the country.

• The Chamber of Mines of Zimbabwe is a private sector voluntary organization established in 1939 by an Act of Parliament. Its main objective is to promote, encourage and protect the interests of the mining industry in Zimbabwe.

• The Mines and Mineral Act came into jurisdiction on November 1, 1961. This act consolidates and amends laws relating to mining and minerals.

• The Base Minerals Export Control Act came into legislation on May 30, 1949 to prohibit or regulate the export of base minerals from Zimbabwe. Base minerals include coal and all other minerals and mineral substances except precious metals, natural oil and gas.

Reasons to buy

To gain an overview of Zimbabwe's mining fiscal regime.

Companies mentioned

Table of Contents

1 Executive Summary 1

2 The Zimbabwean Mining Industry – Governing Bodies 5

2.1 Ministry of Mines and Mining Development 5

2.2 Chamber of Mines of Zimbabwe (COMZ) 5

3 The Zimbabwean Mining Industry – Governing Laws 6

3.1 Mines and Minerals Act 6

3.2 Base Minerals Export Control Act 6

3.3 The Minerals Marketing Corporation Act 6

3.4 The Zimbabwe Mining Development Corporation Act 6

3.5 Environmental Management Act 7

4 The Zimbabwean Mining Industry – Prospecting Licenses 8

4.1 Appointment of approved prosecutor as representative holder of prospecting license 8

4.2 Duration of prospecting license 8

5 The Zimbabwean Mining Industry – Mining Rights and Obligations 9

5.1 Rights 9

5.2 Obligations 9

6 The Zimbabwean Mining Industry – Key Fiscal Terms 10

6.1 Royalty 10

6.2 Corporate Income Tax 10

6.3 Capital Gains Tax 10

6.4 Presumptive Tax 10

6.5 Withholding Tax 10

6.6 Fiscal Incentives 11

6.7 Customs and Excise Incentives 11

6.7.1 Rebate of duty on goods for the mining industry 11

6.7.2 Rebate of duty on goods for the prospecting and research for mineral deposits 11

6.7.3 Rebate of duty on goods imported in terms of an agreement entered into pursuant to a special mining lease 11

6.8 Loss Carry Forward 11

6.9 Value Added Tax 11

7 Appendix 12

7.1 What is this Report About? 12

7.2 Methodology 12

7.3 Secondary Research 12

7.4 Primary Research 13

7.5 Contact GlobalData 13

7.6 About GlobalData 13

7.7 GlobalData’s Services 14

7.8 Disclaimer 15

List of Tables

Table 1: The Mining Industry in Zimbabwe – Fiscal Regime Terms and Other Taxes (%), 2014 1

Table 2: The Mining Industry in Zimbabwe – Royalty Rates (%), 2014 10

List of Figures

Figure 1: The Mining Industry in Zimbabwe – Commodity Mines at Different Stages (Number of Mines), 2014 1

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