Zimbabwe could revoke platinum tax if refinery built: newspaper

HARARE (Reuters) - Zimbabwe will only revoke a tax on raw platinum exports if mining companies build a refinery, the mines minister was quoted by a state-owned newspaper as saying on Wednesday. The African nation, which has the world's second-largest platinum reserves, published a bill on Jan. 9 implementing a 15 percent tax effect from Jan. 1. The tax was first proposed by President Robert Mugabe's government in 2013 in a bid to encourage mines to process platinum locally. Mines Minister Walter Chidhakwa told The Herald newspaper, which is widely seen as the government's mouthpiece, that he had informed mining companies during meetings that the platinum tax could be removed only if they build a refinery. "If they build the refinery facility, I will be quite happy to recommend to His Excellency the President, the Minister of Finance and Parliament that we revoke the policy," Chidhakwa said. He could not be reached for immediate comment. The tax will eat into profits for Aquarius and Impala Platinum, the two largest operators in Zimbabwe. Anglo American Platinum also mines in the country. Finance Minister Patrick Chinamasa who told Reuters this week he would retain the tax because companies had failed to provide plans for a local refinery. The chamber of mines, which is leading discussions with the government on behalf of mining companies, declined to comment. Costs to build a refinery and the power plant needed to run it have been put at around $3 billion, equivalent to more than 20 percent of Zimbabwe's gross domestic product.