Maravi

(NEWZIMBABWE) Platinum mines owe govt US$400 million

Platinum mines owe govt US$400 million
05/11/2011 00:00:00
by Business Reporter

THE government has accused the country’s leading platinum producers of failing to remit close to US$0.5 billion in taxes as well as short-changing the fiscus by banking profits in off-shore accounts. The allegations were made by Mines Minister, Obert Mpofu and his Finance counterpart, Tendai Biti during a pre-budget seminar held in the resort town of Victoria Falls.

Mpofu claimed that an audit carried out by an international firm had established that Zimplats and Mimosa platinum mines, both subsidiaries of Impala Platinum, as well as Anglo Platinum’s Unki development in Shurugwi owed more than US$400 million in unpaid taxes.

Mpofu said his ministry was signing export receipts of US$500 million per month, but remittances fell way below that figure with Biti adding that the mining sector was remitting only US$150 million despite generating US$2,3 billion.

The ministers called for a complete overhaul of the mining sector’s regulatory regime to ensure the country benefitted from its mineral resources.

“These companies should pay up what they owe and stop short-changing the Government,” Mpofu said.

“We should tackle this issue collectively and ensure these companies pay their dues.’’

He said while government critics were quick to claim that revenues from some of the country’s diamond mining activities were not finding their way into government coffers, the state had actually realised more from the Marange mines compared to what was coming from the platinum sector.

“These big mining companies are depriving the State of due revenues,” he said.

“There is a problem across the mining sector, yet people just want to pinpoint Marange Diamonds. At least we are getting something substantive from Marange unlike from companies such as Zimplats and Unki which are continuously shortchanging us.”

Biti said the country’s platinum miners should made accountable.

“Fifty percent of our exports, which is about US$2,3 billion, is coming from mining,” he said.

“The problem, however, is that only US$150 million is contributed to the fiscus. There is talk of corruption at Chiadzwa, but at least Treasury received US$174 million from there. Where are the Zimplats and the Unkis of this world?”

Labels: IMPALA PLATINUM, OBERT MPOFU, PLATINUM, TAX EVASION, TENDAI BITI, ZIMPLATS

posted by MrK @ 5:13 PM