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Zimbabwe increases royalties on commodity sales

Zimbabwe finance
minister Tendai Biti
Harare, Zimbabwe, MININGREVIEW.COM — 26 November 2010 – “The government of Zimbabwe is to increase royalties on diamond sales from 10 to 15%,” finance minister Tendai Biti has announced in the Zimbabwe capital.

In a budget statement, Biti also revealed that royalties on gold and platinum would be going up to 4.5 and 5% respectively from 4%.

“Despite the increase in international metal prices, royalties collected from precious metals had amounted to a paltry US$20.7 million from sales of US$593.8 million, during the period January to September 2010,” he said.

Biti went on to reveal that Zimbabwe had produced 2.7 million carats of diamonds this year, and had conducted three diamond sales. He said 2.4 million carats were from Marange while the remaining 300 000 carats had come from Murowa and River Ranch.

“Three diamond sales were conducted, with US$85 million being raised in total sales from the auctions," Biti added.