Miners urge govt to review mining political administrative boundaries

Published: 10 June 2013

THE Zimbabwe Miners' Federation has urged Government to review the existing mining political administrative boundaries to ensure that districts where mining activities are taking place benefit directly from the exploitation of resources in their areas.

In an interview yesterday, ZMF president Mr Trynos Nkomo said it was important for Government to come up with new administrative boundaries that would support and promote the Community Share Ownership Schemes' concept.

"The current mining political administrative boundaries must be done away with because they have failed to work in favour of local communities in the same way that Government is working towards achieving through Community Share Ownership Schemes.

"For example, we have confirmed deposits of diamonds in Beitbridge which is in Matabeleland province but the administration of the resources is done in Masvingo, and likewise, the proceeds are managed by the Masvingo district office," said Mr Nkomo.

"As a result of that unfortunate arrangement, the Beitbridge community does not benefit from its resources.
"This anomaly needs to be redressed urgently. We are advocating for a situation whereby each community administers its own resources and benefits from them," added Mr Nkomo.

He said this problem was not peculiar to Beitbridge.

Mr Nkomo said in Mutare, the mining commissioner had no say over mining activities in the district.

Under the Indigenisation and Economic Empowerment Act, mining companies are expected by Government to dispose 10 percent of their shareholding to communities in which they are operating, while the remaining 41 percent goes to other organs including employees.

Meanwhile, Mr Nkomo said small-scale miners are grateful for the slashing of mining tariffs by 50 percent in a bid to accommodate miners facing operational challenges ranging from liquidity constraints, lack of mechanisation and a tight operating environment.

The reduction of mining fees came after miners contested the increase last year.

Registration fees for diamond mining licences rose to US$5 million from US$1 million, while application for platinum mining licences rose to US$500 000 from US$200.

Miners will now pay half of the fees but the ZMF still believes Government should also reduce mineral prospecting licence fees since prospecting is the starting point to mining.

Mr Nkomo said punitive prospecting fees risk discouraging new mining investors, especially small-scale miners, which are plagued by cash shortages.

"We applaud Government's move of reducing mining tariffs but we still feel prospecting licence fees should also be reduced.

"Prospecting for the resource should be made easy because that is the entry level to mining. Our view is that the fees must come down to US$100. Currently, the fees are pegged at US$350 and this is prohibitive," said Mr Nkomo.

Prospecting fees were previously pegged at US$50 but were increased to US$500 before they were recently slashed to US$350.

Zimbabwe is blessed with a number of minerals that include gold, platinum and diamonds in addition to various other metals.
- Zmpapers