Mining claims repossession hampered by court cases

GOVERNMENT says repossession of 213 idle mining claims across the country under phase one of the programme is ongoing, but indicated progress was being bogged down by some mining title-holders who have approached the courts to block the process.

The Government said it would enforce the “use it or lose it” policy to repossess all idle or underutilised mining concessions to prevent speculative holding of valuable assets, a practice that was affecting national economic development.

Through the Mines and Minerals Act, Government is empowered to repossess unused mining titles and reissue them to investors capable of developing productive mines.

Last year, over 80 mining claims out of the 213 identified idle mining titles were repossessed under the first phase of the initiative.

The repossessed assets are in sub-sectors such as gold, coal and chrome, among others.

Mining is considered a key sector expected to drive short- to medium-term economic growth, especially as the country’s strives to become an upper middle-income economy by 2030.

The sector is strategically important to Zimbabwe as it already generates more than 75 percent of the country’s foreign exchange earnings, which stood at nearly US$10 billion last year.

In an interview on Thursday, Mines and Mining Development Deputy Minister Polite Kambamura said:

“The expropriation of idle mining titles under phase one is still work in progress.

“We have written to all of them (title-holders) explaining our position. Some of the title-holders went to court to oppose the process.”

In 2020, the Government announced it would resize some of the unutilised concessions with a huge resource base and allocate them to other investors who can readily unlock value.

It is believed that some investors, especially large mining houses awarded Special Grants (SGs), are holding on to claims for speculative reasons.

Deputy Minister Kambura said the decision by some aggrieved title-holders to take legal recourse will slow down the process of repossessing the claims.

“We now await for courts to decide, and as to when the verdict will be made, you know, court processes at times take some time,” he said.

Zimbabwe Miners Federation (ZMF) chief executive officer Mr Wellington Takavarasha, whose organisation represents small-scale miners, said State land not being used productively should be repossessed.

“We are aware that there are some large mines that have approached the courts seeking to block the repossession of their mines that have been lying idle for years,” he said.

“Whether they go to court or not, eventually they have to show cause why they are not operational.

“And through the Mines and Minerals Act, the Government is empowered to repossess such land and reallocate to productive investors.

“Through the Ministry of Mines and Mining Development, the Government has a target to achieve a

US$12 billion mining economy, so if unproductive land is parcelled out to prospective productive investors that will boost output in the mining industry.”

In 2019, President Mnangagwa launched a mining industry strategic roadmap to achieve a US$12 billion sector by 2023. The plan envisages that coal, chrome, diamond, iron and steel will contribute US$1 billion.

The target represents a 344 percent increase from US$2,7 billion in 2017.

Last year, because of the responsive strategies that the Government has taken to foster growth and development of the mining industry, export earnings from mining stood at US$5,2 billion.