adminThe news, which we expected would be welcomed by players in the industry who felt that the fee structure announced early last year was prohibitive, has instead received a lukewarm reception from small-scale miners.
According to the chief executive of the Zimbabwe Small Scale Miners’ Association, Mr Wellington Takavarasha, whose group has been lobbying for a downward review of the fees, the gesture by the Government will not do much to help up-and-coming miners in the country.
According to Mr Takavarasha, it was not about percentages.
His organisation feels that despite the proposed 50 percent slash in fees, the amounts were still prohibitive for members of the association.
“Our concern is not about the fees being cut by 50 percent. We want the government to realise the full potential of small scale miners by reviewing the fees so that they are affordable to ZMF,” Mr Takavarasha was quoted as saying.
Under the fee structure announced by the Government last year, registration for platinum and diamond claims was pegged at $2.5 million and $5 million respectively while those for coal, mineral oils and coal bed methane were set at $500 000.
Assuming that the Government reduces the fees by 50 percent, it would mean that claims for platinum would cost $1.25 million while for diamonds $2.5 million.
This is still a lot of money which will prevent locals from taking part in the lucrative mining industry.
The fact that government, through Mines and Mining Development Deputy Minister Gift Chimanikire, has said it was reviewing the fees, shows that the government admits that the fees were now prohibitive.
Government needs to be careful that in its quest to curb speculative holding of claims, it does not drive away genuine investors keen to invest in the country’s mining sector.
Speculative holding of claims is a major problem which is stifling economic growth and we believe there should be other ways of dealing with speculators other than painting all potential investors in the mining industry with the same brush and slapping them with punitive fees. The Government has already adopted the “use it or lose it” policy where people with undeveloped claims lose them after a certain period.
We acknowledge that mining is a capital intensive sector that requires people with deep pockets hence potential investors should be prepared to pay heavily for the claims, considering that most mining activities result in irreparable damage to the environment.
Government should also consider coming up with a two tier mining activities and licence fee structure. One should be for local investors who should pay less for their God-given natural resources while the other one modelled on regional trends should be for foreign investors.
If the government insists on reducing the fees by 50 percent, we foresee a situation where the majority of indigenous miners will be left out of the industry or with the current indigenisation and empowerment drive, they would be used as fronts as few locals would be able to afford the fees.
Online Reporter