Zim’s eyes enhanced the accumulation of mineral reserves

By Davison Vandira

THE Government has announced that beginning of October, all mining royalties will be paid for in the form of minerals in line with the National Development Strategy One objectives of building sustainable strategic mineral reserves.

Zimbabwe’s paradigm shift from cash to a commodity basis for mining royalties is set to boost the country’s attainment of sustainable development goals to ensure future generations benefit from natural resources which are currently being extracted.

The new policy thrust will see half of the mining royalties being paid for in mineral commodities, while another half will be remitted in cash to cater for treasury obligations, as royalties are a key source of foreign currency.

Zimbabwe National Chamber of Commerce chief executive officer, Mr Christopher Mugaga says the new policy initiative has worked successfully in other jurisdictions in safeguarding and creating wealth for nations.

“The approach taken by the government is very commendable in that it has got multiple effects even in the strengthening of our local currency in the long run as reserves have traditionally been used as a safety net for currency. However, there is a need to put proper mechanisms for administration of these reserves to serve the purpose they have been created for,” he said.

Explaining the new policy measure while addressing thousands of ZANU PF supporters in Chiredzi on Saturday, President Emmerson Mnangagwa said the building of mineral reserves will be key to sustainably developing the country.

‘In the spirit of building our country brick by brick, we have introduced a commodity payment for mining royalties such that even future generations will benefit from these resources, and this is our rallying call when we say no one should be left behind in our economic journey,” he explained.

With the country pursuing an upper middle-income society by 2030 and a US$12 billion mining economy by next year, building strategic mineral reserves will go a long way in driving the value addition and beneficiation of natural resources to ensure maximum returns.

The post Zim’s eyes enhanced the accumulation of mineral reserves appeared first on ZBC NEWS.

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