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Zimplats accused of underpaying royalties by Zimbabwe authority

January 10, 2012 - 11:32 GMT Location: Johannesburg

KEYWORDS: Zimplats , Zimbabwe , Patrick Museva-Shayawabaya , royalties , platinum

Zimbabwean platinum producer Zimplats has been accused of underpaying royalties by the Zimbabwe revenue authority and is now locked in a legal battle to fend off a $28 million claim for outstanding payments.

The country’s tax authority has already deducted $7.2 million from the company’s bank account through a garnishee order made last November, Metal Bulletin understands. At that time, Zimplats sought a high court application to overturn the order and thereby force the authority to return the funds, but the platinum producer’s plea was deemed as being not urgent, meaning it could take months for the case to be heard, according to the state-owned...

All material subject to strictly enforced copyright laws. © Euromoney Institutional Investor PLC.

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