Zim tax will cost Amplats $10m a year - CEO

Zim tax will cost Amplats $10m a year - CEO

2015-02-09 17:08

London - Zimbabwe's new 15% export tax on raw platinum, which was introduced earlier than expected in January, will cost Anglo American Platinum (Amplats) [JSE:AMS] about $10m a year, Chief Executive Chris Griffith said.

“We are talking very, very strongly with the government at the moment and we have explained the impact on the company,” Griffith said in an interview on the sidelines of the Mining Indaba conference in Cape Town.

READ: Amplats profit plunges 46%

“The impact is about $10m [in lost earnings] but in a mine that has just been investing and putting capital in and that needs to start making money back because we have been investing very heavily in building houses too. Those things will stop, many of the programmes [will stop]."

Zimbabwe’s government first proposed the tax on unrefined platinum in 2013, in an effort to push mining companies to process the metal domestically. Late last year however it said it would postpone it until January 2017 to give miners time to build the smelting and refining plants.

But the government's finance bill, which was published on January 9, proposed its introduction from January 1, causing concern among Amplats, the world's largest platinum producer, and others that operate in the country.

  • Fred Mud - 2015-02-09 17:31

    Sounds like a good move, but the only problem is how the tax will be used. Will the collected tax be used enrich the fat cats, or assist rebuild the country?

      Weilbachjurgen Decker - 2015-02-09 19:52

      I am more interested how it will be paid - Zimbabwe has no currency; will it be done in the stone-age way, ie with cattle? Like the foot-people do here in South Africa (versus the boat-people who arrived here already having discovered banks, currencies, stock exchanges, etc).

      Erns Kleynhans - 2015-02-09 20:21

      Honestly Fred, what do you think it will be spent on? To support the lavish lifestyle of the AU boss and cronies?

  • Liz - 2015-02-09 17:32

    Money needed to buy better red carpets !

      George Anderson - 2015-02-10 07:49

      Trip free ones

  • ThePissedOffNative - 2015-02-09 18:03

    Which right thinking investor would risk his money in that country? Bob has repeatedly told you that his country is for Africans..but in turn he wants western aid...

      ThePissedOffNative - 2015-02-09 21:36

      Dennis I guess you must be living in that basket case called Zimbabwe licking mugabarge stinking shoes bought in Europe...get that afro chip off your shoulder boet

      ThePissedOffNative - 2015-02-10 04:09

      Dennis? That's a European name if I remember correctly..they should have called you in your native name!

  • Donovan Dunn - 2015-02-09 20:34

    So $2m a year to the coffers, and $8m to uncle Bob

  • craig.cronwright - 2015-02-09 22:33

    Another primate out tonight

  • John Stoltz - 2015-02-10 07:33

    Judging by the way Mad Bob handled the Zim economy over the past 30 years, it is safe to assume that 90% of the $100 million will go to Bob and his cronies, and the economy will get the remaining 10%!!

  • Gerrit Goosen - 2015-02-10 10:11

    Why do you conduct business there anyway

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