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Oliver Kazunga Senior Business Reporter
MINING deals that the country is handling with investors are above board and the government has taken measures to guard against corruption, a Cabinet Minister has said.
Mines and Mining Development Minister Walter Chidhakwa said this while responding to questions in Parliament on Wednesday as to why the mining projects were not being taken to the House of Assembly for scrutiny before approval.
“We’re all aware of the fact that the President (Cde Robert Mugabe) and the government have taken a position against corruption to ensure that things are done transparently. What happens is that a project is submitted to the Permanent Secretary in the ministry.
“The Permanent Secretary takes it to what we call the Mining Affairs Board, which is a board that represents both the private sector and the government.
“So the private sector is actually sitting on this board. They make recommendations on any major project to the Ministry of Mines and Mining Development,” he said.
Cde Chidhakwa said his ministry would then take the project for approval by the President.
The President, he said, may take it to Cabinet depending on whether the particular project has competition in relation to allocation of concessions.
“So, if an investor applies for a concession for platinum, the application comes and it’s considered in this process.”
Of late, the Ministry of Mines and Mining Development has hosted a number of investors from countries such as China and Russia who have shown keen interest in investing in different projects.
The investors have shown interest in mining coal, platinum, gold and diamonds.
Cde Chidhakwa said since his ministry reports to the Auditor-General all issues in relation to the ministry were reflected in the Auditor-General’s documents.
“So, there’s nothing that you would call shrouded because the process is clear. Projects come and when they are approved, we make it very clear that projects are approved. If they are rejected, we also advise that the projects have been rejected,” said Minister Chidhakwa.
On diamonds in Marange, he reiterated government’s position that the diamond mining companies in Manicaland would be consolidated to ensure a win-win situation between the government and the investors.
At the moment Zimbabwe is generating less than $100 million per year from gemstones in Marange compared to Botswana which has less diamond reserves but is earning $8,4 billion annually from the resource.
“Our desire to consolidate comes out of the fact that we don’t believe that the companies invested enough to drive a profitable business,” he said.
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