The government is set to lift the suspension of royalty remittance on gold producers with effect from 1 August 2009.

Gold producers had been spared since 2004 from paying the levy due to viability challenges.

A 3% levy is charged on the gross mineral value of precious metals, which include gold and platinum.

´´In view of the progress already registered in the mining of gold,
I propose to lift the suspension of royalty remittance on gold, with effect from 1 August 2009.´´said Finance Minister, Tendai Biti.

The minister however said the taxation and royalty levels will be reviewed.

´´In my Statement on the 2009 Budget, I announced that taxation and royalty levels will be reviewed in line with international best practices. However, in order to allow ample time for consultations, taxation of the mining sector will be dealt with in the 2010 Budget.´´ Biti said.

The country’s gold sector is currently recovering following the liberalization of the sector with Metallon Gold and Mwana Africa announcing the opening of their mines.

Metallon has projected to produce 650 000 onces annually in the next five years after securing working capital.