adminindustry’s contribution to national economic development.
Mr Mhembere said this after he was elected the chamber’s new president at a closed council meeting during the 74th annual general meeting at Troutbeck Resort in Nyanga last week.
Mr Mhembere succeeded Mr Winston Chitando, who is the executive chairman of Mimosa Mining Company.
He will be deputised by Metallon Gold’s chief executive Mr Allan Mashingaidze (first vice president) and Freda Rebecca’s general manager Mr Toindepi Muganyi.
He said the fact the words “indigenisation and beneficiation” invariably dominate mining industry discussions in Zimbabwe shows that the sector has become a critical component of the country’s national economic development agenda and firms were obliged to ensure they make their utmost contribution. But he noted the need to engage the Government on various topical issues to address areas of concern and challenges affecting mining companies’ potential to bring out the best out of their operations.
“The mining sector has accepted that it is no longer sufficient to measure our contribution to the country’s (Gross Domestic Product) solely in monetary terms.
“We have begun to consider ourselves as national assets in the sense that we should be asking ourselves how we can make sure that our activities are better aligned with national development goals and ambitions,” he said.
He said that the compliance with stakeholders’ expectations was a huge determination in mines’ right to operate and while it was key to maintain this, it was no longer easy to do so since “. . . we are now in an era where companies must go beyond cheque book and box ticking corporate social responsibility efforts”. With governments across the world becoming more demanding in terms of how resources rent should contribute to economic growth, Zimbabwe has not been an exception and Government has found itself haggling with mostly foreign-owned companies on how this key aspect can be addressed.
Among the issues that have led to numerous debates and deep-seated suspicions on each other’s sincerity to ensuring mutual benefits from the country’s resources have been the issues of indigenisation, the compliance requirements or criteria and levies and fees on the mining firms.
Mr Mhembere said Zimbabwe was evidently endowed with mineral resources, which had potential to change the economic fortunes of the country considering that mining, accounting for 15 percent of Zimbabwe’s GDP, contributed the most to the Budget in terms of tax and foreign exchange.
He noted that the companies’ licences to mine come with a responsibility to develop the economy, some which stand to benefit from the results too, but pointed out that there was a need to balance companies’ and Government’s aspirations with market conditions for an equilibrium that ensures viability.
Mr Mhembere said a policy framework that allows mining firms to meet their long- term commercial targets, support national and industry development and protect best business practice was crucial.
“Because of this, one of my priorities as I embark on this role is that of driving a national dialogue that will enable us to operate in a more informed and responsible manner for the good of Zimbabweans,” he said.
He said there was a need to review the mines’ previous communication efficacy with stakeholders to establish trust and search for what the industry could have done in the past that bred suspicion.
Mr Mhembere said his priorities included enhancing relations with the Ministry of Mines and Mining Development, contributing effectively to the new mining policy, leading national debate on mining processes, extraction, processing, exports and accounting of the resultant revenue. He added that he would lead the debate on beneficiation, foster development of small miners and focus on the development, retention and return from Diaspora of key skills in the sector.
Online Reporter