Government rethinks mineral exploration policy

15

MINES minister Winston Chitando says Zimbabwe should fine-tune its mineral exploration framework in order to benefit from its resources.
In a bid to boost the performance of the sector, government recently lifted the suspension of new Exclusive Prospecting Orders (EPOs). This has, however, hit a snag after conflicts emerged between the interests of small-scale miners and some prospective explorers.
“The legislation that governs exploration needs to be looked at. We have had a considerable number of applications for EPOs coming in but we have had to put a pin on some applications because they cover an area where there are artisanal miners,” Chitando said last week at a mineral exploration conference hosted by Polaris SEISMIC in Harare.
“There are instances where approving such an order would put the livelihoods of the artisanal miners at risk.
“We should come together to redefine the exploration process in a way that allows the co-existence of artisanal miners, large-scale explorers and farmers,” he said.
Last month, the Zimbabwe Miners Federation, the body that represents small-scale miners, reportedly opposed applications for EPOs by 11 local and international mining companies. The body argued that the applications were harmful to “the economic empowerment and social development of women in Zimbabwe”.
EPOs are obtained through an application made to the Mining Affairs Board. The maximum possible period of holding onto an EPO, according to mining laws, is six years ― initially for three years and possible extension for a maximum three years.
According to data from S&P Global Market Intelligence, Africa as a whole remains poor in allocating funds for exploration. In 2017, the continent received exploration budgets totalling $1,09 billion, representing only 14 percent of the global budget.
Chitando said Zimbabwe could do better than its goal of achieving a $12 billion mining industry by 2030, if exploration improved.
“We are targeting to make mining a $12 billion industry by 2030, from $2,4 billion in 2018. Government will, over the next few weeks, unpack the modalities and targets towards the goal.
“However, we could do so much better if our exploration improved. The country is underexplored. The exploration thus far has been using old techniques. There is need for the country to improve in this regard,” he said.
Reports say most of Zimbabwe’s exploration data was generated in the 1950s and 1960s.
About 60 percent of Zimbabwe’s land is said to be made up of ancient rocks that are renowned for hosting rich varieties of minerals resources including gold, base metals and industrial minerals.
newsdesk@fingaz.co.zw