Small-scale miners challenge proposed Bubi levies

MINERS operating in Bubi District have urged the local authority to adopt a more flexible approach to mining levies, arguing that charges should reflect the size and operational capacity of different mining ventures.

The issue emerged during Bubi Rural District Council’s stakeholder consultation meeting on its proposed 2027 budget, where miners raised concerns over planned increases in levies and called for a payment structure that takes into account the varying capacities of mining operations.

Mining is the backbone of the Inyathi area, making the sector key to the council’s efforts to raise revenue.

Under the proposed budget, the council intends to increase the land development levy for small-scale miners from US$300 to US$1 000.

Clearance certificates would cost US$300 per claim for large-scale mines, US$150 for medium-scale operations and US$100 for small-scale miners.

Medium-scale mining operations, classified as moderately mechanised ventures with VAT leach tanks not exceeding 50 tonnes and employing no more than 50 workers, will pay an annual levy of US$6 000.

Speaking on the sidelines of the consultative meeting, Zimbabwe Miners Federation (ZMF) Matabeleland North deputy secretary for technical services, Madodana Lunga, said levies imposed on miners should translate into tangible benefits for the sector and surrounding communities.

“The levies should ultimately benefit miners and address their needs,” said Lunga, who is also a small-scale miner in Bubi.

ZMF’s Matabeleland North provincial treasurer, Sibongile Ndlovu called for special consideration for women involved in artisanal mining, arguing that many were still building their operations.

“Women should pay less, preferably half the levy,” she said.

Council is saying mining activities place significant pressure on infrastructure and public services hence the proposed increases in levies.

Bubi RDC said heavy haulage trucks used by mining companies contribute to the deterioration of roads, bridges and culverts, while growing mining communities increase demand for health facilities, schools, housing, emergency services and other public infrastructure.

The local authority also noted that land occupied by mining claims reduces the area available for agriculture, forestry and commercial farming thereby affecting traditional sources of council revenue.

However, the council is not only looking to miners as a source of revenue. It is also seeking partnerships with mining companies in key development areas, including road maintenance, borehole development, construction of public infrastructure and environmental rehabilitation.

Mining companies are also being encouraged to support the development of the district landfill through the provision of machinery, equipment and technical expertise.

The council’s executive finance officer,Mr Bhekimpilo Ndebele said the stakeholder consultation sought to give miners an opportunity to express their concerns and contribute to the formulation of a realistic budget.

“We want to understand their grievances and hear from them what they can afford. Miners are key stakeholders who could also partner with the council in improving service delivery,” he said.

Mr Ndebele said the consultation process was part of the local authority’s efforts to align its 2027 budget with national development priorities while mobilising resources to improve services.

The council is targeting improvements in water and sanitation, roads, public lighting, waste management, health and other critical areas.

The proposed 2027 budget also includes abstraction permit charges of US$10 per tonne for companies, mines and institutions extracting materials such as pit sand, river sand, pebbles and gravel.

Individuals extracting the same materials would pay US$5 per tonne.

The consultations highlight the delicate balancing act facing Bubi RDC which has to generate sufficient revenue from a rapidly expanding mining sector while ensuring that levies do not become a burden on smaller operators struggling to grow their businesses.