The nation relies heavily on the mining sector. Credit: Maksim Safaniuk/Shutterstock.

The Government of Zimbabwe has announced that it will discontinue offering tax relief to mining companies starting in January 2025, Bloomberg reported.

This move by the government aims to force companies to establish facilities for processing raw materials within the country.

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In a statement posted on X, the country’s Ministry of Finance said: “The country’s platinum industry has already made progress in developing a base metal refinery plant, which is expected to come online next year.”

Zimplats Holdings is said to have invested $29m (£22.62m) in the refinery project, which has an estimated total cost of $190m.

The Treasury said: “Government has already introduced 5% beneficiation tax on the export of unbeneficiated platinum, with a view to compel mining houses to invest in the requisite plants.

“In addition, government removed customs duty on the importation of the equipment required in the setting up of beneficiation plants.”

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Zimbabwe President Emmerson Mnangagwa previously indicated the government’s intention to introduce incentives aimed at stimulating the local processing of mining outputs.

This strategy is reflective of Zimbabwe’s aim to maximise the economic benefits of its considerable natural resources, which include the world’s third-largest platinum reserves, trailing only Russia and South Africa.

The nation relies heavily on the mining sector, with more than half of its revenue stemming from the export of various minerals such as gold, chrome and diamonds.

In a related effort to further enhance local beneficiation, the Zimbabwean Government is currently in discussions with lithium mining companies, according to the news agency.