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Prosper Ndlovu in Victoria Falls
THE government has directed mining companies in the country to provide exploration reports on mineral deposits within their claims and warned those who hold concessions for speculative purposes risk losing them. Mines and Mining Development Minister Walter Chidhakwa yesterday said lack of a comprehensive mineral exploration report was costing the country critical investment opportunities.
He admitted the government was to blame for failure to supervise mines to come up with exploration reports on mineral deposits within their clams in line with the law.
“I blame miners for not doing explorations. I’m also to blame for not ensuring mineral explorations are conducted. The law says once you get on the ground every six months you should submit exploration report and the returns you’re making, the big companies know that,” he said.
Minister Chidhakwa said the government needs the general structure of the country’s geological formations so that when investors come, they don’t start scouting but focus on specific geological formations.
He said failure to produce a comprehensive exploration report has hampered progress in the diamond mining in Chiadzwa for instance where alluvial exploitation is running out yet there is no knowledge of the quantity and quality of the kimberlite deposits underneath.
“Our Mines and Minerals Act is very clear that when companies start operations they need to submit an exploration report. But we’ve not done that and that’s a disaster. To mine without doing proper exploration is tantamount to looting. It gives companies the latitude to hold concessions that they’re not using,” said Minister Chidhakwa.
He said government will take measures to ensure that companies do the right thing.
“Those who hold concessions for speculative purposes can be assured that we’ll take them back,” warned Minister Chidhakwa.
The minister said the government will not deviate from the beneficiation and value addition thrust and urged mining companies to embrace the approach to enhance increased earnings as opposed to raw exports.
“When we say value addition, we’re not trying to hurt you (miners) but we’re trying to grow the cake so that we don’t have many fights,” said Minister Chidhakwa.
He said while mining was the largest exporter, the country was not benefiting much from the trade as raw ore was cheaper that processed minerals.
Minister Chidhakwa said the recent lifting of chrome ore ban was a temporary measure aimed at rejuvenating operations in the sector that should not be viewed as a backward step.
He said the move would not reduce smelting levels but instead it will open more opportunities for other downstream players such as transport, particularly the railway service and other logistics.
Online Reporter