UPDATE 1-Zimbabwe to let gold, platinum mines retain higher dollar earnings
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HARARE, Nov 19 (Reuters) - Zimbabwe will allow gold andplatinum mining companies to retain up to 55 percent of theirearnings in dollars, government and central bank officials saidon Monday, as authorities in the southern African nation move toensure operators remain viable.
Mining accounts for more than two-thirds of Zimbabwe'sexport earnings but the sector has seen some companies close dueto a dollar crunch that has hobbled imports of spare parts andother consumables.
Deputy mines minister Polite Kambamura said gold producersthat sell their output to a central bank refining subsidiarywould now keep 55 percent of their sales in dollars, up from 30percent previously.
The threshold should gradually increase to 70 percent, hesaid.
Central bank governor John Mangudya said the U.S. dollarretention levels for platinum and chrome miners had beenincreased to 50 percent from 35 percent.
"We have made a decision that there is viability in miningby making sure we don't kill the goose that lays the goldenegg," Mangudya said during the publication of the results of asurvey on the state of mining.
Mangudya, without giving details, said the central bankwould create a special fund to help mining companies with extraU.S. dollar requirements.
The survey results showed that although mining executiveswere positive about the industry's prospects in 2019, they werepessimistic about the government's ability to maintainpredictable and consistent mining policies.
(Reporting by MacDonald Dzirutwe; Editing by Dale Hudson)
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