Government defends mining fees

The Government last month increased mining fees by 5 000 percent in some instances through Statutory Instrument 11 of 2012.
Registration of diamond claims has increased from $1 million to $5 million while a gold buying licence now attracts $100 000 up from $20 000.
Application fees for prospective coal investors were increased from $5 000 to $100 000 while registration or renewal fee was set at $500 000.
Mr Mupazviriho told the Parliamentary Portfolio Committee on Mines and Energy that the Government was still discussing with miners following an outcry over the new fees.

“We are in constant discussions with them in order to find a lasting solution,” he said.
“We might consider revising the levies but this does not necessarily mean downwards, it might be a revision in the other direction, that is, upwards.”
He said under the existing laws it was not easy to force claim holders to relinquish an undeveloped claim, hence the need to increase the mining fees.

“By increasing these fees we are not trying to chase away anyone but trying to encourage those that are serious to come and take up mining.
“Right now we have 500 Exclusive Prospecting Order applications. You find that one company applies for 30 claims, it is because we charge little and they can afford to have many claims even without utilising them,” he said.

He said although the Ministry was empowered to cancel licences on claims that were not being exploited, it was not going to do that.
“You cannot just cancel because initially the Act is there to promote mining and you have to put in place mechanisms that allow you to do that.”
Mr Mupazviriho denied that the increase was detrimental to  the growth of the sector and would scare away potential investors.

Chiredzi West legislator Mr Moses Mare questioned why the ministry was increasing the burden on miners, especially small-scale miners, when other ministries like that of Agriculture were assisting small-scale farmers with inputs and implements.

Uzumba MP Mr Simbaneuta Mudarikwa also queried why the ministry awarded many claims to one company.
Mr Mudarikwa said the new licence fees were detrimental to the country’s indigenisation and empowerment drive since most indigenous miners would not afford the fees.
“Why does the Mining Affairs Board give claims to one person? It is a crisis created by mismanagement within your system,” he said. — New Ziana.