Chronicle Editor
Harare Bureau
ECONOMIC analysts and key stakeholders have applauded a resolution adopted at the Zanu-PF Annual National People’s Conference in Bulawayo last week to amend the legislation governing Exclusive Prospecting Orders (EPOs) to enable multiple entities to explore areas currently covered by single EPOs.
EPOs are Government-issued licences that grant exclusive rights to an investor to explore specific minerals within a designated area.
This allows the holder to conduct geological surveys, drilling, and other exploration activities without competition.
They are typically granted for three years, with the option for renewal for another three.
Concerns have been raised within the mining sector that some EPO holders are retaining these licenses for speculative purposes, without contributing to economic development through exploration or mining activities.
Analysts believe that allowing multiple players to explore areas covered by EPOs would unlock significant value within the mining sector and stimulate economic growth.
This move could encourage increased investment, job creation, and foreign exchange earnings, ultimately benefiting the national economy.
“It will unlock a tremendous mining economy,” economic analyst Dr Langton Mabhanga said.
“In some way, it will decolonise the mining sector since some of the provisions of the legislation are backdated to colonial times.
Dr Mabhanga suggested that some EPO licence holders were using these licences to speculate on mineral rights rather than actively exploring and developing them.
In August this year, the Government said it had started reviewing some EPOs granted to investors three years ago for coalbed methane to assess the investors’ commitment to these projects.
Mines and Mining Development Deputy Minister, Dr Polite Kambamura, said several factors were considered when approving or rejecting an EPO.
These include the investor’s financial capacity to fund the project, the scope of the prospecting work, and the company’s reputation.
Dr Kambamura expressed concern that some holders might be holding on to licences for speculative purposes rather than actively pursuing exploration and development.
“So, we will be looking at all those issues (such as) do (holders) have the capacity? Have they done similar work elsewhere? Do they work in other EPOs in the country because we do not want people to just hold for speculation,” he said.
Some of the resolutions related to the mining industry include enforcing the policy of “Use it or Lose it” in order to inhibit mining entities from holding mining claims for speculative purposes, develop and implement a robust programme to revive all closed-down mines through modern technologies, innovation and funding frameworks, ensure that land owners in resettlement areas are given “the right of first refusal” in mining claims.
A mining expert, who requested anonymity, told our Harare Bureau that reforming the EPO system is crucial for unlocking Zimbabwe’s mineral potential.
He said by allowing multiple investors to explore areas covered by EPOs, the Government can stimulate competition, encourage timely exploration, and maximise economic benefits.
However, it was essential to ensure that the new regulations were transparent and accountable and promote sustainable mining practices.
“Revising the EPO system is a positive step towards unlocking Zimbabwe’s mineral potential,” said a mining expert who has worked for three major mining companies in Zimbabwe.
“By allowing for multiple players to explore a single EPO area, the Government can stimulate competition, encourage timely exploration, and maximise the economic benefits from these resources.
“It is essential to ensure that the revised regulations promote transparency, accountability, and sustainable mining practices.”
Online Reporter