Online Reporter
Zvamaida Murwira
Senior Reporter
AS a deterrent against hoarding of mining claims and a move to ensure only legitimate investors engage in strategic minerals mining in Zimbabwe, prospective investors will need to pay US$1 million or enter into a partnership agreement with the Government.
This provision is contained in the new Mines and Minerals Bill, which was gazetted on Wednesday last week and replaces the Mines and Minerals Act.
The Bill introduces a range of reforms to modernise the mining sector and align it with national development goals.
While large investors must meet strict requirements, the Bill provides flexibility for small-scale miners, with the Mines and Mining Development Minister empowered to exempt them from the US$1 million requirement if deemed prudent.
According to the Bill, the minister, in consultation with the Mining Affairs Board, can declare any mineral as “strategic”.
“Under clause 6 (Strategic minerals) it is proposed that the minister should have power, after consultation with the Mining Affairs Board, to declare any mineral to be a strategic mineral,” reads the Bill.
“The declaration means that any proposed miner of the strategic mineral must enter into a prior agreement with the State which, among other things, may require any or all of the following: a commitment to invest at least US$1 000 000; the formation of a company or other special investment vehicle in which the State has an interest and other undertakings relating to environmental protection and corporate social responsibility.
“The form of title under which a strategic mineral may be exploited shall be a mining lease or special grant.”
This means once a mineral is declared strategic, a miner must enter into a formal agreement with the State, which may include minimum investment of US$1 million or establishing a company or investment vehicle with State participation.
Strategic minerals are those deemed critical to a country’s economy, security or industrial development and whose supply could be at risk due to geopolitical, economic or logistical factors.
In some countries, minerals such as lithium, which is crucial for making batteries for electric vehicles (EVs) and renewable energy storage; as well as cobalt, used in electronics and EVs, are deemed strategic.
In most cases, rare earth minerals that are essential for making magnets, and for use in electronics and military technology are deemed strategic.
Zimbabwe is estimated to have the largest lithium deposits in Africa.
According to the Bill, small-scale miners can be exempted and be allowed to extract the strategic minerals if the Mines and Mining Development minister views it as prudent to do so.
The Bill also comprises provisions relating to conflict resolution mechanisms between farmers and miners, which include negotiations, referring disputes to the provincial mining director (PMD) and Mines and Mining Development secretary, and ultimately to the Administrative Court if a solution is not found.
“The precise exercise of these rights are negotiable with the occupier of the affected land, but if the negotiations are fruitless, the prospector may refer the dispute to the PMD. The PMD thereupon convenes a meeting of the disputants and decides the dispute after hearing them.
“An aggrieved disputant may appeal to the Secretary, and ultimately to the Administrative Court,” reads Clause 36 of the Bill.
“This clause is the first of many adverting to the manner of resolving disputes between prospectors and miners, on the one hand, and farmers and other landholders on the other hand, and it sets the pattern for other clauses addressing farmer/miner disputes.”
The Bill provides elaborate steps to be followed should there be a dispute.
There are also clauses that preclude certain areas such as arable and pastoral land from prospecting, as the Government seeks to deal with issues that might undermine the Land Reform Programme, agricultural activities and food security.
Commenting on the Bill, Attorney-General Mrs Virginia Mabiza said it will give impetus to the country’s economic growth and fulfilment of national objectives and vision.
The 396-page Bill will, among other things, reconstitute the composition of the Mining Affairs Board and clarify its functions, establish the Mining Cadastre Register and Registry (a digital platform that records and manages mining licences, concessions and other legal instruments related to mining operations), rationalise classes of mining titles to three and regulate the activities of prospectors.
There has been a lot of anxiety by stakeholders on the Bill after its passage took long because of various reasons, one of which was that President Mnangagwa rejected the initial proposed law in 2018 as he felt certain clauses were not consistent with the Constitution.
The Parliamentary Legal Committee expressed reservations on the revised Bill in 2023 that was brought up, resulting in it eventually lapsing due to the prorogation of Parliament.
“This is a major achievement if you look at the legislative agenda. These Bills are put in place strategically to align with our Vision, Vison 2030, because the Bill is there to enhance several economic activities,” said Mrs Mabiza.
“It seeks to achieve several economic issues. We have completed it in accordance with the instruction that we got from the line Minister approved by Cabinet.”
Mrs Mabiza said her department managed to complete the Bill despite being plagued with a shortage of drafters, a challenge that has since been addressed.
“The Bill has been quite outstanding, with so many stakeholders taking interest in the drafting of the Bill and sometimes taking us back and forth,” she said.
“But I am pleased to say, having done all the consultations with the line ministry, we have been able to harness input from all stakeholders that are relevant. So, it is quite an achievement as far as we are concerned and we believe it will go through Parliament and very soon it will become an Act of Parliament to be implemented for the good of our economy and for the fulfilment of our Vision 2030.”
Some of the essential elements in the Bill are the introduction of the Mining Cadastre Register, which will ensure uniformity and simplicity of mining titles, and that the pegging of secondary reefs and the holding of extra-lateral rights are more carefully regulated or abolished.
It will remove the distinction between precious metal and base metal claims, while also providing for a mining title to be granted in the form of an ordinary or special mining lease, where the title extends over four or more continuous blocks.
The Bill requires holders of mining rights to work on their claims rather than preserve their title by paying annual fees. This is meant to curb speculation of claims,
The proposed law makes provision for the indigenisation and localisation of the mining industry at the primary level of mining.
Online Reporter