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The High Court has ruled in favour of the Zimbabwe Mining and Smelting Company (ZIMASCO), exempting the company from paying over US$10 million in royalties to the Zimbabwe Revenue Authority (ZIMRA), reported <a href="https://businesstimes.co.zw/relief-for-zimasco/">Business Times</a>.
According to the Mines and Minerals Act, miners are required to pay royalties to ZIMRA based on the output from their mining operations.
ZIMRA had ordered ZIMASCO, the country’s largest producer of ferrochrome, to pay this substantial amount following its assessment of the company’s tax affairs.
The authority claimed that ZIMASCO had inaccurately computed its royalties between January 2019 and September 2022.
After reviewing the arguments from both parties, High Court judge Justice Paul Musithu ruled that ZIMRA must refund ZIMASCO a total of US$2,485,183.83 and ZWG389,606,502.95.
The court found that chrome ore concentrates and ferrochrome, as mineral-bearing products, were exempt from royalties during the specified period.
The ruling clarified that royalties for these products only became applicable following the Finance Act of 2021.
Justice Musithu granted ZIMASCO’s application, determining that the mining company should not be liable for royalties on chrome ore concentrates and ferrochrome, given their status as mineral-bearing products. He ruled:
<blockquote>
Resultantly it is ordered that the application be and is hereby granted with costs.
It is declared that chrome ore concentrates and ferrochrome are mineral-bearing products and no mining royalties are payable on their disposal.
Consequent to paragraph 2, the applicant is not liable to pay mining royalties to the respondent on the chrome ore concentrates and ferrochrome which the applicant disposed of during the period 1 January 2019 to 30 September 2022.
The schedules issued by the respondent to the applicant on 24 March 2023 for the total sums of ZWG881 544 511.00 and US$10 523 347.00, as shortfalls of mining royalties be and are hereby set aside.
The respondent is ordered to refund the sums of ZWG389 606 502.95 and US$ 2 485 183.83 and any other amount paid by the applicant to the respondent in discharging the mining royalties in the total sums of ZWG 881 544 511.00 and US$10 523 347.00, as the shortfall of mining royalties and penalties due by the applicant for the period January 2019 to September 2022.
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Pindula News

The High Court ruled in favor of ZIMASCO, a mining company, and said they don't have to pay over US$10 million in royalties to ZIMRA. ZIMRA wanted the money because they thought ZIMASCO wasn't paying enough for mining. But the court said ZIMASCO doesn't have to pay for a certain period. ZIMASCO will even get money back from ZIMRA. The court decided that ZIMASCO shouldn't pay royalties for certain products before 2021. The ruling means ZIMASCO doesn't owe as much money as ZIMRA thought.

High Court Rules In Favour Of ZIMASCO In ZIMRA Dispute

Zimbabwe Mining And Smelting Company (ZIMASCO), the largest integrated ferrochrome producer in Zimbabwe, has reportedly compulsorily retrenched over 200 workers from its various subsidiaries around the country.
<a href="https://masvingomirror.com/zimasco-today-retrenches-200-workers/">The Mirror</a> reported sources as saying those retrenched workers are from the company’s operational centres in Mutorashanga, Shurugwi, Harare and Kwekwe.
In a notice of compulsory retrenchment written to each worker and seen by The Mirror, ZIMASCO offers no package and gives the workers May 31, 2024, as the last working day.
The affected workers have refused to sign the retrenchment letters in the absence of any mention of packages and the short notice.
Workers Committee chairman Davison Panganai told The Mirror that he was not at work and not aware of the matter.
According to the notice, ZIMASCO said it had taken the drastic move in response to poor prices on the international market and other challenges. Reads part of the notice:
<blockquote>
Further to the brief from the executive chairman shared with you recently, the Company hereby advises that your position was made redundant through restructuring and was declared excess to the company’s immediate requirements.
You have thus been listed for compulsory retrenchment which processes are commencing with immediate effect.
</blockquote>
In March this year, Impala Platinum Holdings’ Zimbabwean unit, Zimplats, initiated voluntary job cuts among its employees as a cost-cutting measure.
Zimplats offered its employees a minimum of three months’ pay in redundancy packages.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

ZIMASCO Retrenches 200 Workers

Several former Zimasco employees in Shurugwi town are now living in makeshift shelters or with relatives following their evictions from the company houses they have been occupying.
The former employees have been evicted for failing to pay the increased rentals for the mine houses.
The ferrochrome producer said the evicted families were failing to pay rentals and many of them were in arrears running into several months. Zimasco spokesperson Clara Sadomba said:
<blockquote>The affected former employees have left the company through retrenchment, retirement or resignation and are therefore treated like any other tenant renting our houses.</blockquote>
When seven former employees tried to resist eviction last month, they were arrested and spent one night at Shurugwi Police Station.
One of those arrested, Tinago Nguluve, said they resisted eviction because they felt that what the company had done was not procedural.
Meanwhile, Shurugwi Councillor, Freddy Ncube condemned the evictions saying Zimasco should have given the tenants some time to look for alternative accommodation.
<h4>More: <a href="https://www.chronicle.co.zw/ex-zimasco-workers-homeless-after-evictions/" rel="noopener noreferrer" target="_blank">Chronicle</a></h4>

Evicted Former Zimasco Workers Now Homeless

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