A mining corporation has commended revised budget measures affecting gold royalties and taxes. Caledonia Mining Corporation stated that the proposed changes causing industry concern, were amended by Finance Minister Mthuli Ncube. The initially planned royalty increase from five to ten percent, triggered when gold prices exceeded twenty five hundred dollars per ounce, was adjusted to only apply above five thousand dollars. The minister also withdrew two other proposals, one altering the tax treatment for capital expenditures and another imposing a withholding tax on interest from offshore loans.
Caledonia's CEO Mark Learmonth called the updated provisions a positive signal for investors, showing government support for mining sector development. The company noted the withdrawn tax on offshore loans particularly benefits its planned Bilboes Gold Project, which expects to use substantial foreign debt. Parliament has since passed the budget with these concessions, sending the bills to the president for final approval. The original budget aimed to boost revenue and stabilize the economy, but legislators argued the stricter royalty plan would hurt miners, leading to the revised, gentler threshold.
Caledonia's CEO Mark Learmonth called the updated provisions a positive signal for investors, showing government support for mining sector development. The company noted the withdrawn tax on offshore loans particularly benefits its planned Bilboes Gold Project, which expects to use substantial foreign debt. Parliament has since passed the budget with these concessions, sending the bills to the president for final approval. The original budget aimed to boost revenue and stabilize the economy, but legislators argued the stricter royalty plan would hurt miners, leading to the revised, gentler threshold.
