Zimbabwe Stops Diamond Fees Before They Start

In what would be a surprising reversal, the parliament of Zimbabwe may soon cancel the country's recent regulations on mining that were only enacted months ago, Mining.com reports. The Zimbabwe Congress' legal committee has formulated a report which decrees the new rules instituted by Mines and Mines Development Minister Obert Mpofu as unconstitutional, saying the tax rates are too high and will discourage foreign investment in the country's mining industry.

If the new rules put forth by Mpofu were put into practice, diamond companies operating in the company would be required to pay about a billion dollars more in taxes annually. The regulations state that individual applications to mine for diamonds must be accompanied by a fee of one million dollars. In the event that an application is denied, this fee is not refunded.

The African Development Bank published a report last week that echoes the concerns of Zimbabwe's legal committee, according to Mining.com.

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