Royalties on platinum and other pgms in Zimbabwe will be increased from three to 3.5 per cent next year, it was confirmed yesterday (3rd December).

Finance Minister Tendai Biti unveiled a $2.25 million national budget with the aim of finding a balance between improving both business and living standards in 2010.

In addition to the change in royalties, he confirmed that the size of mineral exploration concessions will be decreased from 65,000 hectares to 20,000 hectares.

"The economy, which was initially projected to grow for the first time in ten years by 3.7 per cent in 2009, is now expected to register a higher growth rate of 4.7 per cent compared to a decline of more than ten per cent in 2008," said Mr Biti.

"This positive growth is largely underpinned by improved performance in sectors of agriculture, mining, manufacturing and tourism, which previously recorded persistent decline in growth rates during 2000-2008."

Zimbabwe is still attempting to make progress after a shaky power-sharing agreement was brokered between President Robert Mugabe and Prime Minister Morgan Tsvangirai in February.

However, the country is rich in platinum reserves and offers considerable potential for both small and large mining companies looking for new exploration projects.

Source:

Biti unveils 2010 budget (03/12/09)

Zim economy will grow by 4.7%, says Biti (04/12/09)

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