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miners up to US$5 million, as well as introduce fees that will be charged for certain mineral blocks.
“The new fees will also be applicable to current operators and as such will be backdated. The period where foreign miners exploit our resources for next to nothing is over.”
The move is expected to curb speculative claims hoarding because currently the Mines and Minerals Act does not specify a limit as to the number of claims one can hold.
Through the indigenisation drive, which requires foreign mining companies to sell 51 percent stake to indigenous Zimbabweans, the Government is taking steps to ensure the nation benefits from its mineral resources.
This includes a recent proposal by Finance Minister Tendai Biti in the 2012 National Budget to increase royalties for gold and platinum to 7 percent from 4,5 percent and 10 percent from 5 percent, respectively from next year. The plan has, however, not come without opposition. Mining companies are resisting the move.
Addressing delegates at the same event, the Chamber of Mines of Zimbabwe president Mr Winston Chitando urged the Government to scrap plans to review upwards the royalties for the two minerals.
“It is not profitable when you push up royalties. It is better to increase corporate tax,” he said. The Government, however, appears eager to maintain its stance.
Deputy Prime Minister Arthur Mutambara said: “There shall be no more free mining claims. If a foreign investor is interested in our minerals, we will require that he invest an amount that is equivalent to the value of the resources in the ground as part of their equity investment. Only after that can they bring the required working capital.”
Although Zimbabwe is yet to ascertain the value of its vast mineral resources, there are plans to set up, through exploration, a registry of minerals.
Online Reporter