Gibb River Diamonds, the company holding the lease on the Ellendale mine in West Kimberley since December 2019, welcomes a recent drop in royalty rate - from 7.5% to 5% - by Western Australia authorities. The Ellendale mine, which in the past produced 50% of the world's typical fancy yellows for Tiffany & C° hasn't produced diamonds since 2015, when former owner Kimberley Diamonds decided to only focus on their Botswana project.
Zimbabwe's treasury will cut the royalty for diamond mining to 10% from 15% of gross revenue to reduce the cost of mining for conglomerate (hard rock) diamonds, attract investment and increase extraction, The Sunday Mail wrote over the weekend. Presenting the 2020 National Budget, Finance and Economic Development Minister Professor Mthuli Ncube said that since diamond miners are now exploiting deep-lying deposits, the cost of extraction has significantly increased.
Zimbabwe’s Treasury has so far received nearly $260 million in dividends over nine years from diamond companies operating in Marange in which it has shareholdings, according to comments made to the country's Parliament by Mines Minister Walter Chidhakwa. However, Finance Minister Patrick Chinamasa in April this year told a parliamentary committee that the Treasury has not received royalties — a levy based on production — from the diamond sector, especially Marange firms.
The government of Botswana is bringing relief to profit-squeezed mining companies by allowing them to defer the payment of mineral royalties. Speaking at the 13th Botswana Resource Sector conference, Minerals, Energy and Water Resources Minister Onkokame Kitso Mokaila said the government would introduce short-term relief and would continue to assist the mining industry on a case-by-case basis.
Zambia's government will cut mineral royalties for underground mines to 6%, lower than the 9% proposed earlier, the presidency said on Friday. It will remain at 9% for open pit mines. Zambia's decision to increase royalties for open pit mines to 20% from 6% and those for underground mines to 8% from 6% in January met with an outcry from unions and producers, forcing the government to review the plan.