THE announcement last week by Mines and Mining Development Deputy Minister, Fred Moyo that Government will soon unveil a cocktail of reforms in the mining sector is a welcome development as they will boost revenues to the fiscus in line with Government’s new economic vision, the Zimbabwe Agenda for Sustainable Socio-Economic Transformation (Zim Asset).
In recent years, Zimbabwe, has failed to benefit from its rich minerals through loopholes in the legal framework in the mining sector.
This has necessitated changes in the legal framework to curtail leakages.
Currently Zimbabwe uses the Zimbabwe Mines and Minerals Act (Chapter 21:05, 1961), to administer the mineral sector.
The Act defines minerals as ‘any precious metal, precious stone, coal or base metal’.
The reforms which have been prompted by the imminent establishment by Government of the Sovereign Wealth Fund (SWF) has seen the Mines Ministry summoning diamond mining companies to explain why revenues have been low.
This will see Zimbabweans for the first time in many years benefiting from their mineral resources and boost the implementation of the ongoing indigenisation and economic empowerment programme.
The revamping of the Zimbabwe Mining Development Corporation (ZMDC) and the Minerals Marketing Corporation of Zimbabwe (MMCZ) is a clear sign of Government’s commitment to the full realisation of benefits from the mineral resources.
Without taking anything away from the two boards, the reality is that competent hands and skills are required to steer the mining sector to greater heights.
This is because these two boards have presided over some atrocious management where companies mining platinum and gold have plundered our resources with little or no returns to the fiscus.
“We are worried that the diamond sector announces forecasts that they are unable to meet,” said Moyo.
“It is clear that we are not producing efficiently.
“So our board members whom we put in there should be liable.
“The production targets are not being met and there is the issue of capital, mine planning and geological matters. Some things are being done right.
“There seems to be a tendency to explore as they mine.
“We have therefore asked them to give us forecasts in line with Zim Asset.
“There have been disturbing reports that Zimbabwe diamonds are fetching lower prices because they are being exported without being cleaned.
This has opened doors for sharks that lay their hands and clean the diamonds before reselling them for a higher price.”
Recently, President Robert Mugabe took aim at ZMDC for folding their hands while companies exploit the country’s minerals at free will.
Addressing the 94th Ordinary Session of the ZANU PF Central Committee meeting recently, President Mugabe said Government was strengthening systems in the mining sector as it was one of the key sectors expected to fund Zim Asset.
“We already have big companies mining and we must be present in their operations,” said President Mugabe.
“What is our ZMDC doing?
“It does not seem to be present in the management of the operations of these mines at all.
“It is folding its arms wanting to be given dividends at the end of the day.
“Whether it’s Mbada, Anjin or the Lebanese-three big mining companies-we are going to look into these systems.
Government, Minister Moyo said, will also come up with elaborate plans to re-organise informal gold miners popularly known as ‘Makorokoza’ by de-criminalising and empowering them with training and equipment so that they channel the mineral to the State.
This comes amid revelations by Zaka Central legislator Paradzai Chakona that Zimbabwean authorities should seriously engage their South African counterparts to plug gold leakages that have been estimated to be between 100 kilogrammes (kg) and 300 kg per month.
It is in light of this view that Fidelity Printers Refineries should be capacitated to buy gold on behalf of Government.
Following the call by President Mugabe, platinum miners will soon be compelled to refine their ore at local plants.
It is believed that billions of dollars in potential revenue is being lost annually through the export of ore, while other countries are directly benefiting through adding value to the minerals.
In the platinum sector, Government has begun talks with the three companies that are mining the resource – Zimplats, Mimosa and Unki – to start processing part of the Platinum Group of Metals (pgms) at Empress Mine and Bindura Nickel.
According to Eng Moyo, the ban of platinum exports will be effected soon after consultations with stakeholders in the sector.
“The Government is very frustrated by what is taking place in the platinum sector because we do not know for certain how much we are getting or how much we are losing because platinum is a group metal that contains several other minerals,” he said.
While our Government has been known to come up with brilliant policies blueprint, its biggest undoing has been implementation.
It is our hope that the proposal to reform the mining sector will not suffer stillbirth as action is needed to develop the country.
Let those with ears listen.