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Peter Matika, [email protected]

A two-decade-long delay in reviewing Zimbabwe’s mining law has worsened conflict among stakeholders in the mining sector, including efforts to curb illicit financial flows among other forms of corruption, Speaker of Parliament Advocate Jacob Mudenda said yesterday.

The mining sector is estimated to contribute eight percent towards the national Gross Domestic Product (GDP) while creating over 45 000 formal jobs and informal employment opportunities of approximately one million artisanal and small-scale miners.

Furthermore, the mining sector accounts for 60 percent of the country’s export receipts. In his keynote address during an induction workshop for the Parliamentary Portfolio Committee on Mines and Mining Development in Bulawayo yesterday, Adv Mudenda said outdated legislation has hindered effective regulation and management of the sector, leading to increased disputes and challenges in enforcing transparency and accountability.

He said addressing these legislative gaps is seen as crucial for fostering a more stable and equitable mining environment, ultimately contributing to the country’s sustainable economic growth.

Portfolio committee on mines and mining development induction workshopx

“The 20 years of delay in reviewing the mining law has exacerbated the conflict challenges being experienced by the stakeholders in the mining sector such as the non-recognition of small-scale miners as an integral part of the mining sector; delays in resolving disputes over mine boundaries and ownership and curbing of illicit financial flows from the mining sector,” said Adv Mudenda.

He highlighted the pressing issues affecting the sector, including the exclusion of key stakeholders from the Mining Affairs Board, particularly those directly impacted by mining operations such as local communities.

“This also includes balancing rights between miners and other land surface users such as farmers, environmentalists, and wildlife conservancies, inclusion of key stakeholders of the Mining Affairs Board, particularly those affected by mining operations such as coterminous communities,” said Adv Mudenda.

Others include sustainable environmental mining practices which should guarantee the safety and health of miners as well as the conservation of the environment and the non-use of computerised cadastre systems in the registration of mining titles.

Portfolio committee on mines and mining development induction workshop

Adv Mudenda emphasised the urgent need for sustainable environmental mining practices that prioritise the safety and health of miners while ensuring the conservation of the environment.

He said it is important to implement robust policies and legislation to attract investment in the extraction of critical energy minerals.

“The Parliamentary Portfolio Committee on Mines and Mining Development should, therefore, ensure that the Ministry of Mines and Mining Development comes up with sound policies and legislation that attract investment in the exploitation of critical energy minerals,” said Adv Mudenda.

“In this regard, it urgently befits your committee to ensure that the long-awaited Mines and Minerals Amendment Bill is tabled before Parliament no sooner than later.

Consequently, I hope that the Mines and Minerals Amendment Bill will be aligned to regional and international agreements such as the Environmental, Social, and Governance (ESG) framework, the Africa Mining Vision and the Sadc Protocol on Mining.”

Adv Mudenda urged the Ministry of Mines and Mining Development to finalise the long-overdue Minerals Development Policy which should underpin the architecture of future mining legislation. He said one of the key priorities is the urgent need to advance the Mines and Minerals Amendment Bill in Parliament.

Adv Mudenda said the proposed legislation seeks to modernise the regulatory framework governing the mining sector and create an enabling environment for investment in critical energy minerals.

He said in light of these developments, stakeholders are encouraged to collaborate closely with the Ministry of Mines and Mining Development to accelerate the implementation of strategic initiatives that promote sustainable mining practices and enhance the country’s competitiveness in the global market.

Adv Mudenda said with the support of key government agencies and industry partners, Zimbabwe is poised to emerge as a leading player in the critical energy minerals sector, contributing to economic growth, job creation, and sustainable development.

He urged the committee to equip itself with knowledge about the requirements of parliament in the mining sector.
“These provisions underscore the necessity for the country to get optimal value from contracts that are concluded with investors. This is in line with the 2009 Africa Mining Vision which highlights the need for governments to enter into water-tight contracts that are beneficial to the country,” said Adv Mudenda.

“Your committee should, therefore, take a keen oversight interest in the structure of the mining contracts entered into with the prospective companies as approved by the Zimbabwe Investment Development Agency.” Adv Mudenda said the portfolio committee must also establish whether mining companies exercise corporate social responsibility as provided for by the law.

In terms of Section 13(4) of the Constitution, the State must ensure local communities benefit from the resources in their areas.

“That is why the Finance Act (Chapter 23:04) of 2024 introduced a one percent corporate social responsibility levy on the gross proceeds of lithium, black granite and other cut or uncut dimensional stones and quarry stones.

“Your committee should champion value addition and beneficiation of our minerals as directed by His Excellency, the President, Dr ED Mnangagwa,” said Adv Mudenda.

He called upon the portfolio committee to take heed of the acknowledgment by the National Development Strategy 1 (NDS1).

“Zimbabwe mainly exports unprocessed mineral ores, disadvantageous to the nation in terms of job creation and enhanced revenue generation. Most mineral beneficiation facilities either lie idle or are underutilised.

These include Fidelity Printers and Refiners, Alaska Copper Refinery, Bindura Nickel Corporation Refinery and Kwekwe Roasting Plant,” said Adv Mudenda.

He said harnessing these resources sustainably and equitably is crucial for Africa’s economic development and the well-being of its citizens.