Small-scale miners cry foul over ‘exorbitant’ taxes

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By Thobekile Khumalo

YOUTHS who are into small scale mining are calling for the reduction of exorbitant mining levies required for one to operate in order to allow growth and development in the sector.

Steep mining levies in the country hinder other players from venturing into the sector as it is a challenge to raise the requisite funds.

Government in June 2021, through Statutory Instrument 185 of 2021 regulations announced new mining fees in order to match the economic situation prevailing the country.

Speaking to, Zimbabwe Miners Federation (ZMF) youth secretary for Matabeleland North, Nkululeko Ngwenya said fees needed to register so that one can operate were too high.

“Mines inspection fee is US$300, Environmental Management Agency (EMA) wants US$250, then the council also wants US$400. The money needed is too much and affects growth in the sector.

“We are asking that the government might consider our pleas and reduce operations fees so that the industry may grow and boom, supporting development in the mining sector,” he said.

Ngwenya said levies required were exorbitant for small scale miners, and hindered many from formally registering and regularising their illegal operations.

High mining levies pegged in United States dollars in the industry can promote underhand deals, thereby reducing the quantity of gold delivered to Fidelity Gold Refineries.