Zimbabwe Government Concerned About Mineral Leakages Impacting Revenue
The Zimbabwe government has expressed deep concern over the issue of mineral leakages by highlighting their adverse effects on the country's economy.
Soda Zhemu, the minister of mine has emphasized that these mineral leakages are causing substantial revenue losses.
According to an online report, Soda stated during a gold mobilization deployment workshop, "Mineral leakages not only undermine the government's tax and royalty income but also create instability within the mining sector. Such instability can deter foreign investments, depriving the nation of much-needed capital and expertise."
"The rampant side marketing of gold to illegal markets is a significant contributor to these mineral leakages. This illicit trade results in lost tax revenues, undermines the legitimacy of the gold mining and trading sector, and even contributes to criminal activities."
Comparing this year's gold deliveries to last year's figures, the mining sector has recorded a 13.2% decrease between January and August. This year, 19,335 tonnes of gold were delivered, falling short of the target of 40 tonnes by year-end.
Soda further highlighted the government's efforts to address mineral leakages, including the implementation of a quarterly gold mobilization program aimed at curbing these illicit practices. He stressed the importance of conducting innovative inspections throughout the entire value chain of gold production.
The minister also pointed out the need to collect records on all hammer mills and mobile gold processing units, which have become prevalent in various provinces.
