The Sunday Mail
Kuda Bwititi
Chief Reporter
Miners who under-utilise resources and overstep their users’ rights will be penalised under sweeping measures proposed in the Mines and Minerals Act Amendment Bill.
The Bill creates space for locals to participate in mining expansively, and prescribes claim use time-frames.
In addition, it provides steps to resolving conflict where claims run into someone else’s property, especially farmland.
Speculative mining companies have been holding on to claims for decades, in some cases suing the State when Government trues to repossess them.
Authorities estimate that out of the 10 000-plus claims, only 10 percent are being used.
The Bill, scheduled for possible Cabinet adoption this week, proposes splitting Special Grants into exploration and exploitation functions to deal with companies that mine when they are only supposed to explore.
Some Special Grants will be converted into mining leases to free up reserved areas, facilitating broader participation of indigenes in prospecting and mining. The proposed law also makes it mandatory for firms operating in Zimbabwe to remit proceeds made on foreign markets back to Harare so as to rein in speculation.
In addition, 15 resources — among them platinum, diamonds, coal and chrome — will be classified as “strategic”.
Mines and Mining Development Minister Walter Chidhakwa told The Sunday Mail last week: “The major features of the Bill include a list of what we will call strategic minerals. All energy minerals are strategic minerals. So, specific conditions have been set on how such minerals will be mined and how the licences will be granted.
“There will also be tightening of the ‘Use it or lose it’ policy. If you don’t have the ability to use the mineral, you will lose it. We are also adding a few other features to the title of Special Grants. We will now have exploration and exploitation grants. We have separated the two.”
He added, “It will no longer be a general Special Grant, and this will ensure those with the grants know exactly what to do and that they do not go beyond the activities they are supposed to carry out.
“There will also be a clause on exchange markets. We want to encourage miners to raise money on the stock exchange, but it has to mostly be the local exchange. Whatever is raised on foreign exchanges should be invested back locally. Investors who use the foreign market to raise capital for a resource in this country should be able to use part of what they accrue to plough back into the country.”
The Bill, according to the minister, has previously been debated vigorously in Cabinet.
“The Bill is likely to be finalised this coming week. It has been before Cabinet for a number of weeks now. Several comments have been made on it and there has been animated debate in Cabinet. So, we are going to factor in the comments and condense them into the Bill.
“After all the comments have been factored in, we will take the Bill to the Cabinet Committee on Legislation to determine whether the Bill is in sync with provisions of the Constitution.”
University of Zimbabwe Institute of Mining Research chair Mr Lyman Mlambo said the Bill should clearly spell out the “Use it or lose it” policy.
“This policy should come out strongly in the Bill as this is what enhances production in the mining sector. Increased production means increased revenue to the fiscus and better rewards for our economy,” he said.
“So, this policy is the most important aspect of the Bill. It is of no use having sleeping resources that only benefit speculators.”
Geological consultant Dr Dennis Shoko added: “One of the most important issues that the new law should address is the ‘Use it or lose it’ policy. It has remained just talk for a long time. Related to this, Government has been failing to address the issue of export processing orders.
“This is because there seems to be reluctance in issuing the EPOs and some are cancelled.
“There is very little exploration going on in the country, yet exploration is the starting point for the success of the mining sector. I believe there should be more opportunities for exploration.”
