Anglo unit says tax spat threatens Zimbabwe platinum operation

15th September 2022 By: Bloomberg

Anglo American's platinum operation in Zimbabwe asked the high court to intervene in a bid by the nation’s tax authority to seize $24-million in a dispute over royalties.

Unki Mines, owned by Anglo American Platinum, lodged an urgent court application against Zimbabwe Revenue Authority, which has sought to garnish funds from the company’s account at the local unit of Standard Bank Group.

“The garnishing of the applicants account threatens its very survival as it has been left unable to conduct its normal business,” Unki Mines said in an urgent application to the high court.

The Anglo American business said the action taken by Zimra, as the tax agency is known, is unlawful. The case dates back to 2018, when the tax authority alleged that Unki was underpaying mining royalties. While the company later paid those disputed royalties in local currency, it said the tax authority is demanding payment in dollars.

Calls to Zimra weren’t immediately answered.