Runde wants 5pc mining royalties

Munyaradzi Doma in Zvishavane
Runde Rural District Council has urged Government to ensure that it gets five percent royalties from all mining activities in their jurisdiction. Council officials believe the money can be ploughed back into developmental projects in the district. In their presentations during a National Pre-Budget Consultative Meeting held in Zvishavane on Monday, council officials said they expected the 2018 budget to include their concerns. The Parliamentary Portfolio Committee on Finance and Economic Development is leading the meetings.

“The situation is such that when the companies like, for instance, gold mining companies, conduct their business, we do not benefit from those resources, imagine if the five percent could be retained for the local authorities,” said Runde rural district council chief executive Mr Gorden Moyo.

“And also when the mining activities are concluded, the effects on the environment are a burden to the local authorities, so it’s really a challenge.” Mr Moyo said Zvishavane was endowed with gold reserves which have not benefited the area.

“If five percent of that was to be returned that would go a long way in improving the local communities,” he said. “There is no trace when it comes to small scale miners because they are nomadic in nature.”

Mr Moyo said though the Rural District Council Act provided for revenue collection; it did not give them enough powers to collect the money. Another official expressed concern with the way issues raised during budget consultations were ignored during formulation.

“We used to have some mining royalties from the RBZ which are the royalties for the sale of minerals by small scale mines, such royalties have ceased to come. I think they stopped sometime in 2006 or 2007. We also have a problem with some Government departments, which instead of being regulatory authorities have now become revenue collectors. They are now stampeding on sources of revenue, which previously used to be the preserve of local authorities” said Mr Moyo.

Parliamentary Portfolio Committee on Finance and Economic Development chairperson and Mutoko South legislator Cde David Chapfika assured the officials that their concerns would be submitted to the minister.