By Alois Vinga
FINANCE Minister Mthuli Ncube has said the National Platinum Refinery project will enjoy a 15 percent tax suspension due to their project’s impact in value addition.
Speaking in a media briefing, the treasury boss said that the tax suspension is one of the ways in which government is supporting the efforts of the consortium behind the project.
“This is the only way we can meet them halfway because they have been making progress on the agreed value addition roadmap. The project is made being carried out by a number of companies with interest in platinum,” said the minister.
Government was charging a 15 percent tax on the exportation of un-beneficiated platinum, with a view to compel mining companies to expeditiously transition towards beneficiation of the mineral.
However, mining companies have already made some progress towards attaining on the agreed road map, hence the reduction of the export tax from 15 percent to staggered rates with effect from 1 January 2019.
The beneficiation plan has seen the sector players establishing a joint national processing facility and carrying out a techno-economic feasibility study to set up a common base metal and platinum metal refinery by December 2019.
Plans to set up a base metal refinery are also underway and expected to be completed by December 2021 while the setting up of a precious metal refinery is due in by December 2024.