Investors trickle back into Zim’s mining industry

ZIMBABWE is aggressive about growing its mining industry and the government has put in measures to ensure policy certainty and consistency, Winston Chitando, the country’s minister of Mines and Mining Development, said yesterday.

Chitando told more than 100 investors in Auckland Park, Johannesburg, that the ministry and the Chamber of Mines now held fortnightly meetings to iron out any concerns, in an effort to promote the ease of doing business.

“We ask them what can be done to make your lives better? This is a serious commitment by the government. There is dialogue. We do not necessarily have to agree on the policies, but it is important that policies are clear,” said Chitando.

In addition to the fortnightly meetings, the government planned to launch a mineral-specific desk for each mineral. “The government will also introduce a minerals desk for each commodity.

“Apart from the interface with the government, the desk will ensure any issues are raised through the platform. This shows that the government is serious about the mining industry,” he said.

Zimbabwe has been viewed as a risky investment destination amid declining concerns about the security of tenure. However, investors were now becoming more comfortable following the appointment of Emmerson Mnangagwa in November. Chitando said there had been more exploration activity since the new dispensation.

“At the end of December there were only three exploration licences, at the moment we are now above 30, and by the end of June we will have more than 100,” said Chitando.

As part of the steps by the new dispensation, the country gazetted amendments to the controversial Indigenisation and Economic Empowerment Act two weeks ago. This was expected to pave the way for foreign investors wishing to establish operations in the country.

In terms of the amendments to the indigenisation act, it previously required at least 51 percent of all public companies and any other business to be owned by indigenous Zimbabweans. It now only applied to diamond and platinum industries and the economic sectors reserved for Zimbabwean citizens.

Amended Chitando said the country also planned to amend its Mines and Minerals Act by May.

“The Mines and Minerals Act, which is the spine of the mining industry, will be amended.

“These amendments have been before parliament for more than 10 years, and we would like to ensure the bill is finalised and put into law before the end of May,” Chitando said.

The amendment aims to provide a computerised mining cadastre system that will facilitate the ease of doing business. A cadastre is a comprehensive register of the real estate or real property’s metres-andbounds of a country.

Zimbabwe’s total mining exports last year amounted to $2.6 billion (R30.42bn). However, it has been under-explored.

The country, which is home to more than 70 minerals, is a top 10 lithium producer and has more than 30 billion tons of iron ore resources, it also boasts platinum, gold and coal resources.